Buy PNC Infratech; target of Rs 438: Geojit

Geojit is bullish on PNC Infratech has recommended buy rating on the stock with a target price of Rs 438 in its research report dated September 03, 2023.

Edited by : Subhash Helgaokar

October 03, 2023 / 15:40 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 currently holds order book worth Rs 19,000cr, which is 2.7x TTM revenue and bodes well for revenue visibility in the coming quarters. The company is targeting a topline growth of 15% YoY in FY24, (which includes Rs2,000cr plus revenue from the water segment) with an EBITDA margin of 13 to 13.5%. Order inflows to pick up pace in H2FY24 as MoRTH revised the road construction target from 12,500km to 14,000km in FY24. The company targets an order inflow of ~Rs 10,000cr in FY24, 70% from road and 30% from non-road projects. In Q1FY24, PNC reported a revenue growth of 6% YoY which is below our estimate due to delay a in execution. With an increasing bidding pipeline and robust order book, we reiterate BUY rating on the stock with a TP of Rs 438 based on a P/E of 12x on FY25E EPS and BOT/HAM projects on P/B basis.

Outlook

We expect execution to pick up pace as most of the HAM projects are under execution. The robust order book and strong execution capability will keep the outlook intact. We reiterate our Buy rating on the stock and value the EPC business at a P/E of 12x on FY25E EPS & BOT/HAM on P/B basis with a TP of Rs 438.

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