Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy PNC Infratech; target of Rs 234: HDFC Securities

HDFC Securities is bullish on PNC Infratech has recommended buy rating on the stock with a target price of Rs 234 in its research report dated June 27, 2020.

July 01, 2020 / 11:05 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on PNC Infratech

Whilst PNC reported 4QFY20 Rev/EBIDTA/APAT miss of 8.1/10.3/3.8% respectively, gains on Balance sheet was commendable. NWC reduced from 97days in FY19 to 60days during FY20 on back of robust collections. PNC reported net cash of Rs 4.1bn. Despite challenging FY20, PNC backed new orders worth Rs 52bn taking the order backlog to Rs 135bn (2.8x FY20 Rev). Labour activity/Execution levels have recovered to 70-80% across sites and toll collection has reached 90% of pre COVID levels.


Outlook

PNC remains well placed to gain from UP State Infrastructure build out and strong banking lines and balance sheet augurs well for growth recovery over FY21-22E. We have increased our FY21/22E standalone EPS by 3.9/4.3% and maintain BUY on PNC with a TP of Rs 234/sh (12x FY22E EPS, Rs 59/share for BOT/HAMs).



For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jul 1, 2020 11:05 am

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347