Dolat Capital is bullish on PNC Infratech has recommended buy rating on the stock with a target price of Rs 283 in its research report dated May 27, 2019.
Dolat Capital's research report on PNC Infratech
The revenue grew 41.7% YoY to `10.8 bn (30.7% above our estimate), due to a pick up in execution in key projects. The EBITDA margin was down 715 bps YoY to 14.1% (in line with our estimate). The core EBITDA margin (excluding early completion bonus) was up 32bps YoY to 14.1%. The reported PAT rose 25.5% YoY to `1.4 bn, primarily due to a tax write back of `658 mn in Q4FY19, leading to a decrease in the tax rate to 20.8%, vs. 18.8% in Q4FY18. Adjusting for MAT credit and tax write back, Adj. PAT was up 11.0% YoY to `741 mn (115.6% above our estimate).
We expect revenue/ Adj. PAT CAGR of 38.0%/ 29.1% over FY19-21E. Accordingly, we maintain Buy, with an upward revised SOTP of `283 (Exhibit 2).
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