Buy PNC Infratech; target of Rs 382: Geojit

Geojit is bullish on PNC Infratech has recommended buy rating on the stock with a target price of Rs 382 in its research report dated June 13, 2023.

Broker Research

June 14, 2023 / 10:30 IST

buy

26 Aug, 2025 12:21

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Geojit's research report on PNC Infratech

PNC Infratech Ltd. (PNC) is an infrastructure construction, development and management company; expertise in execution of projects including highways, bridges, flyovers, airport runways, industrial areas and transmission lines. PNC reported 12% top-line growth and 37% YoY PAT growth in FY23, led by a pick-up in execution and better operating margins. EBITDA margin improved by 102bps to 13.5% in FY23 due to a better mix and a fall in other expenses by 30% YoY. The company expects the pace of construction to pick up in FY24 and has guided for 15% YoY revenue growth with a margin of 13-13.5%. In FY23, order inflow remains tepid at Rs 4,900cr, however, the order book remains strong at Rs20,530cr (incl. L1). The company targets an order inflow of ~Rs 12,000cr in FY24, 70% from road and 30% from non-road projects.

Outlook

PNC has improved the execution of water segment projects, which is expected to lead to healthy revenue growth in FY24, along with stable margins. We reiterate BUY rating on the stock with a TP of Rs 382 based on a P/E of 11x on FY25E EPS and BOT/HAM projects on P/B basis.

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