Dolat Capital Market has given Buy recommendation for PNC Infratech with a target price of Rs. 349 in its research report issued on Feb 05, 2021

Dolat Capital Market’s research report on PNC Infratech

PNC reported revenue and EBITDA margin in line; however, APAT above estimates. PNC posted 8.6%/ 4.3%/ 33.7% YoY growth in revenue/ EBITDA/ Adj. PAT to Rs13.2 bn/ Rs1.8 bn/ Rs1.0 bn in Q3FY21. We maintain revenue and EBITDA margins however upgrade APAT estimates for FY21E due to lower depreciation and higher other income. We broadly maintain our estimates for FY22E/ FY23E. We expect healthy revenue/ APAT CAGR of 15.0%/ 18.8% over FY20-23E. Moreover, revenue/ APAT growth slows down to 1.1%/ 1.6% in FY21E due to lockdown impact and jumps back to revenue/ APAT growth of 23.5%/ 31.0% in FY22E driven by stabilization of labour and supply chain issues coupled with execution from 4 HAM/ 2 EPC/ 1 Irrigation project/ 7 water projects where AD is expected between Mar-Apr’21.


The current core construction valuations of 11.3x/ 9.0x FY22E/ FY23E EPS are attractive. Thus, we maintain Buy, with SOTP of Rs349 (12x FY23E EPS and 1x FY22E P/B for HAM and BOT investments).