3 PNCINFRA share price target reports by brokerages below. See what is analyst's view on PNCINFRA share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
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. Revenue grew by 8% YoY despite 10 days of execution impact due to lockdown in Q4FY20. EBITDA margins declined by 55bps to 13.5% due to higher raw material and employee cost. Order book stood healthy at Rs15,629cr (incl. L1 ~Rs7,000cr) which is 3.2x FY20 revenue, provides revenue visibility. Adj. PAT growth was moderate at 3% YoY to Rs76cr due to increase in depreciation and interest costs. Due to near term hindrance on execution we reduce revenue estimate for FY21E/FY22E by 24%/14% respectively. We expect a rebound in earnings from H2FY21 supported by healthy order book. We value standalone EPC business at a P/E of 9x on FY22E EPS and BOT/HAM projects at 0.5xP/B and revise our rating to Buy.
The company management has refrained from giving any guidance for FY21 under current uncertain macro environment. But, in our view the company’s robust order backlog, strong execution track record, net cash balance sheet in EPC business and long term growth opportunity in the sector gives comfort for company maintaining growth in financial on a long term basis. We have factored in COVID-19 related challenges impacting near term execution in our EPS estimates and have revised the same for FY21E/F22E by -18.3%/+3.1%, respectively. The EPC business (adjusted for Rs 36 per share value of BOT/HAM) is available at a PE of 8.5x/5.5x based on FY21E/FY22E adjusted EPS of Rs 12.2 (Vs Rs 14.9 earlier)/Rs 18.7 (Vs Rs 18.1 earlier), respectively. We maintain BUY on the stock with revised sum of the parts based target price of Rs 185 (Vs Rs 175 earlier), as we roll forward to March 22E. Key risk to our estimates and recommendation are any further negative impact of COVID-19 on construction of highways, slowdown in road capex, delay in approvals of projects, etc
We believe that there is a risk on achieving FY21 guidance due to COVID-19 impacting construction work due to lockdown. We have factored in these risks in our estimates. We have also reduced our estimates for order inflows in FY21E/FY22E to Rs 50 bn/Rs 60 bn (Vs Rs 80 bn/Rs 70 bn earlier), respectively factoring in risk related to any slowdown in awarding of projects. We have cut our earnings estimates for FY20E/FY21E/FY22E by 3.8%/15.3%/11.3%, respectively. PNC has been amongst our top picks in the construction space due to strong balance sheet, execution track record and robust order book. The EPC business (adjusted for Rs 37 per share value of BOT/HAM) is available at a PE of 6.4x/5.8x/4.7x based on FY20E/FY21E/FY22E adjusted EPS of Rs 13.5 (Vs Rs 14 earlier)/Rs 14.9 (Vs Rs 17.6 earlier)/Rs 18.1 (Vs Rs 20.4 earlier), respectively. We maintain BUY on the stock with revised sum of the parts based target price of Rs 175 (Vs Rs 258 earlier). Key risk to our estimates and recommendation are any further negative impact of COVID-19 on construction of highways, slowdown in road capex, delay in approvals of projects, etc.
PNCL remains as one of our preferred pick in the road infra space given its 1) healthy order book (Rs87bn as on 3QFY20), 2) stellar execution pace with most projects getting completed within stipulated time (fetching early completion bonus in many projects), 3) stable EBITDA margins (~14%) 4) comfortable debt-equity ratio of 0.2x and 5) ability of internal accruals to meet the incremental equity of ~Rs4.2bn in its HAM portfolio over next two-three years. With strong 9M performance, we have raised our revenue/PAT estimates by 9.3%/28.5% for FY20E; however, we have kept estimates of FY21E/FY22E largely unchanged. On the back of strong execution in the seven under-construction HAM projects and other large ticket-size EPC projects and strong bid pipeline (Rs900bn), we expect PNCL’s revenues to grow at ~25% CAGR over FY19-22E. At CMP, the stock trades at a P/E of 10.9x/11.8x on FY20E/FY21E EPS and is trading at an EV of 7.1x/7.2x FY20E/FY21E EBITDA. We maintain BUY rating on the stock with a TP of Rs264.
Execution will improve in the coming quarters as most of the HAM projects got appointed date. We increase FY20E/21E earnings estimate by 41%/17% respectively due to higher execution and operational efficiency. We value EPC business at a P/E of 11x on FY21E EPS & BOT/HAM projects at 1x P/B and reiterate BUY rating.
he company expects appointed date in a remaining HAM project by Nov’19. Considering the robust order book and bid pipeline, we now expect PNC to clock ~41% topline CAGR over FY19-21E. We also expect earnings growth to remain healthy on the back of high margin order book under execution. At the CMP, PNC’s EPC business is trading at 11.9x FY21E P/E. We maintain our BUY rating on the stock for the revised target price of Rs.279 (based on SOTP valuation).
We have upgraded FY20E and FY21E EPS by 8-22% based on higher revenue growth estimates and arbitration award/early completion bonus received in completed projects. The EPC business (adjusted for Rs 41 per share value of BOT/HAM) is available at a PE of 13.4x and 9.3x based on FY20E and FY21E revised adjusted EPS of Rs 12.2 and Rs 17.5, respectively. We upgrade our rating on the stock to BUY (from ADD) with revised SOTP based target price of Rs 251 (Vs Rs 226 earlier).
PNC remains our top pick in the EPC space given its robust orderbook & with execution started on six of the seven HAM projects. Its prudent WC management & lean balance sheet also reinforces our confidence that PNC is well placed to capture huge opportunities ahead. With a strong ramp up in execution to continue in FY20E, we expect revenue growth at a 27.4% CAGR to | 5,028.1 crore in FY19-21E. Hence, we maintain our BUY rating on the stock with a target price of | 255/share. We value its construction business at | 207/share (at 8x FY21E EV/EBITDA implying 15.2x FY21 EPS).
We like PNC Infratech on account of strong execution track record, improved cash flows, strong balance sheet and robust order book which gives high revenue growth visibility. Further, PNC has strong pipeline of projects in roadspace which will support its future order book and leaves scope for earning’supgrade. The EPC business (adjusted for Rs 32 per share value of BOT/HAM) is available at a PE of 12.9x and 10.7x based on FY20E and FY21E EPS of Rs 13.4 and Rs 16.1, respectively. We recommend ADD (Vs Buy earlier) on the stock with unchanged SOTP based target price of Rs 226.
Execution will improve in the coming quarters as most of the HAM projects got appointed date. Further, divestment of Ghaziabad Aligarh BOT project for a cash inflow of Rs300cr along with internal accruals and arbitrations are sufficient for funding current and future projects. We increase FY20E/21E earnings by 15%/21% respectively on account of ramp-up in execution. We value EPC business at a P/E of 13x on FY21E EPS & BOT/HAM projects at 1x P/B and reiterate BUY rating.
PNC’s robust order book, strong execution capabilities & lean balance sheet along with prudent WC management reinforce our confidence that the company is well placed to capture huge opportunities ahead. With a strong ramp up in execution to continue in FY20E, we expect revenue growth at a 27.4% CAGR to | 5,028.1 crore in FY19-21E. Hence, we maintain our BUY rating on the stock with a target price of | 235/share. We value its construction business at | 198/share (at 8.5x FY20E EV/EBITDA implying 14.8x FY20 EPS) and BOT & HAM projects at Rs 49/share.
We have upgraded FY20E EPS estimates by 20% based on higher revenue growth estimates and introduced estimates for FY21E. The EPC business (adjusted for Rs 32 per share value of BOT/HAM) is available at a PE of 11.4x and 9.5x based on FY20E and FY21E EPS of Rs 13.4 (Vs Rs 10.8) and Rs 16.1, respectively. We maintain our Buy rating on the stock with revised SOTP based target price of Rs 226 (Vs Rs 192 earlier), as we roll forward our valuation to FY21E.
PNC’s robust order book, strong execution capabilities and lean balance sheet with better WC management reinforce our confidence on the future prospects of the company. Also, we believe the company is well poised to capture huge opportunities ahead. We expect revenues to grow at a CAGR of 44.8% in FY18-20E given the significant ramp-up in HAM projects execution with receipt of appointed dates for five big-ticket projects. Hence, we maintain our BUY rating on the stock with a target price of rs 170/share. We value its construction business at RS 154/share (at 7x FY20E EV/EBITDA) and BOT & HAM projects at Rs 53/share.
We have marginally revised our FY19E and FY20E estimates based on 9MFY19 revenue and margins, capex guidance and debt. The EPC business (adjusted for Rs 30 per share value of BOT) is available at a PE of 11.8x and 9.9x based on FY19E and FY20E revised EPS of Rs 9.0 and Rs 10.8 per share, respectively. We maintain our Buy rating on the stock with revised SOTP based target price of Rs 192 (Vs Rs 197 earlier).
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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