Q3FY21 Result Update - PNC Infratech - ICICI Direct

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.

Valuation & Outlook

PNC remains our preferred pick in the EPC space given its robust order book, healthy return ratios and lean balance sheet. Irrespective of its asset monetisation plan fructification, sufficient internal accruals from current order book and current cash is enough for equity infusion. Government focus on roads and higher allocation in Union Budget also bodes well for the company. 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).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_PNCInfra_Q3FY21.pdf

Shares of PNC Infratech Ltd was last trading in BSE at Rs.268.1 as compared to the previous close of Rs. 244.75. The total number of shares traded during the day was 325133 in over 4075 trades.

The stock hit an intraday high of Rs. 277.9 and intraday low of 255.05. The net turnover during the day was Rs. 86163885.

Source : Equity Bulls

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