Buy PNC Infratech, target price Rs 383: Anand Rathi

Anand Rathi has buy call on PNC Infratech with a target price of Rs 383. The current market price of PNC Infratech Ltd. is Rs 246.25. Time period given by analyst is one year when PNC Infratech Ltd. price can reach defined target.
PNC Infratech Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 6310.86 Crore) operating in Infrastructure sector.

PNC Infratech Ltd. key Products/Revenue Segments include Contract Revenue, Material and Scrap for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2247.33 Crore, up 29.20 % from last quarter Total Income of Rs 1739.40 Crore and up 19.04 % from last year same quarter Total Income of Rs 1887.83 Crore. Company reported net profit after tax of Rs 257.71 Crore in latest quarter.

Investment Rationale
With the recent strong additions and upwardly revised EPC potential for its earlier water-supply orders in Uttar Pradesh, PNC’s revenue assurance is now comforting. The balance sheet strength stays and, with the recent monetisation of the Ghaziabad-Aligarh BOT-toll, it is set to turn sturdier. With an augmented OB, the EPC side of the business appears set for an even better scale ahead, and the well-set balance sheet mean capital is unlikely to come as a constraint either for a better EPC scale or equity infusion needs in the asset ownership business. On the benign valuations, proven execution abilities, and healthy mid- to long- term prospects, the Buy rating stays, with a TP of Rs383.

Promoter/FII Holdings
Promoters held 56.07 per cent stake in the company as of 31-Mar-2022, while FIIs owned 9.99 per cent, DIIs 26.83 per cent.