ICICI Direct has given Buy recommendation for PNC Infratech with a target price of Rs. 300 in its research report issued on Feb 07, 2021
ICICI Direct’s research report on PNC Infratech
PNC Infratech’s (PNC) execution was robust for the quarter, with revenue growth back, as expected and stable margins. Topline came in at Rs 1322 crore, up ~9% YoY, driven by strong execution and improved labour availability. EBITDA came in at Rs 179 crore, up 4.3% YoY, with margin at 13.5%, down 56 bps YoY. The company reported PAT of Rs 103.2 crore, up 33.7% YoY, led by a robust operating performance and partially aided by higher other income and lower interest costs.
We maintain our BUY rating with a revised SoTP target price of Rs 300/share (earlier Rs 220). We value its construction business at Rs 258/share (at 6.5x FY23E EV/EBITDA implying ~15x FY22 EPS).
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