Sharekhan's research report on PNC Infratech
Standalone execution was better than expected in Q4FY2021, while net earnings were in line with estimates owing to a higher effective tax rate. The company is eyeing a 20% y-o-y revenue growth, OPM of 13.5-14% and order inflows of Rs. 8000-9000 crore for FY22. The order book at Rs. 16,623 crore, 3.4x TTM revenues provides strong revenue visibility. Company is in discussions with respect to asset divestment and expects valuation to be arrived within a month post which due diligence is expected to start.
Outlook
We retain a Buy rating on PNC Infratech Limited (PNC) with an unchanged price target of Rs. 300, owing to a strong order book and healthy earnings growth outlook.
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