Views on PNC Infratech 1QFY2016 Results: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on PNC Infratech 1QFY2016 Results:

Another quarter of strong earnings growth; maintain positive view towards the stock

"Since its IPO in June 2015, PNC Infratech stock has delivered over 25% absolute return, surpassing our Price target. This run-up is owing to (1) new orders wins (~INR 1,100cr), (2) 2 BOT projects commencing operations and (3) strong earnings growth reported in last 2 quarters.

If we look at the growing bid-pipeline of Roads & Highways vertical (NHAI + State PWDs) in North where PNC enjoys comfort, when coupled with their past execution record, we are comforted that standalone entity would report strong earnings growth during FY2015-2017E. Also commencement of 2 more BOT projects indicate that consolidated Balance Sheet would peak from FY2017E onwards, which again is a big positive.

Considering better than expected order inflow trends YTDFY2016 and strong quarterly earnings, we are working on upgrading our estimates and price target, indicating some more potential appreciation in the stock price for investors already invested in the stock."

Source : Equity Bulls

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