Dolat Capital's research report on PNC Infratech
PNC reported results above estimates on all fronts. PNC posted 31.5%/ 33.3%/ 40.0% YoY de-growth in revenue/ EBITDA/ Adj. PAT to Rs9.1 bn/ Rs1.2 bn/ Rs601 mn in Q1FY21. The company is currently operating with 90% strength. We broadly maintain our estimates for FY21E/ FY22E factoring Q1FY21 results. We expect healthy revenue/ APAT CAGR of 9.1%/ 9.6% over FY20-22E. Moreover, revenue/ APAT growth significantly slows down to 0.1%/ -9.8% in FY21E due to lockdown impact and jumps back to revenue/ APAT growth of 19.0%/ 33.3% in FY22E driven by stabilization of labour and supply chain issues coupled with execution from 4 HAM/ 2 EPC projects where AD is expected in Jan’21/ Oct’20. Though the stock has increased ~20% since our Q4FY20 result update released on 27 Jun’20, the current core construction valuations of 10.8x/ 8.1x FY21E/ FY22E EPS are attractive.
Outlook
Thus, we maintain Buy, with SOTP of Rs271 (12x FY22E EPS and 1x FY22E P/B for HAM and BOT investments).
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