ICICI Direct's research report on PNC Infratech
PNC Infratech’s (PNC) execution was robust, with a stronger than expected topline and higher margins led by operating leverage. Topline came in at Rs 1644 crore, up ~42% YoY, driven by improved executable order book and optimum labour availability. The consequent margin was at 14.1% (up 63 bps YoY), led by operating leverage. PAT came in at Rs 129.4 crore, up 70% YoY, led by a strong operating performance, lower interest costs and despite higher taxation.
We maintain our BUY rating with an unchanged SoTP target price of Rs 300/share. We value its construction business at Rs 253/share (at 6.5x FY23E EV/EBITDA implying ~12x FY23 EPS).
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