Prabhudas Lilladher's research report on PNC Infratech
PNC Infratech (PNCL) reported decent set of numbers with revenues marginally below estimates, while EBITDAM coming in-line at 14.1%. Toll collection across portfolio grew 20% YoY in 4Q; PCOD received for 3 projects in May’21 and 2 more projects due to receive PCOD in FY22 would boost toll revenues. On the back of limited impact of Covid second wave on PNCL’s projects, uptick expected in execution levels with entire highways order book moving into execution (AD received in 6 new projects) and further AD expected for 2 water infra projects in 2-3 months, management guided ~20% revenue growth in FY22E (excluding the possible impact of Covid third wave) with EBITDAM to be ~13.5-14%.
Outlook
At CMP, the stock trades at a P/E of 12.5x/ 11.2x on FY22E/FY23E EPS and an EV of 7.1x/ 6.1x FY22E/FY23E EBITDA. Maintain ‘BUY’ rating with SoTP based TP of Rs295 (Same as earlier).
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