Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy PNC Infratech; target of Rs 205: Prabhudas Lilladher

Prabhudas Lilladher is bullish on PNC Infratech has recommended buy rating on the stock with a target price of Rs 205 in its research report dated June 27, 2020.

June 27, 2020 / 12:09 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on PNC Infratech

PNCL posted a strong operating performance in 4QFY20 with revenues up 7.6% and EBITDA margins stable at 13.5%, despite more than 10 days of revenue loss due to nationwide lockdown. Post relaxation in lockdown towards April’20 end, construction activity resumed across its project portfolio at ~75% efficiency levels with 70-80% (largest among its peers) labour availability. Toll collection have also recovered to 80-90% pre-covid levels led by pick up in commercial traffic, witnessed across its BOT portfolio. Management expects labour uncertainties to persist until monsoon and expects the execution to pick up pace from 2HFY21. PNCL remains as one of our preferred pick in the road infra space given its 1) healthy order book (Rs86.3bn as at 4QFY20), 2) stellar execution pace with most projects getting completed within stipulated time (fetching early completion bonus of Rs1,095mn in FY20), 3) stable EBITDA margins (14-15%) 4) comfortable debt-equity ratio of 0.2x.


Outlook

At CMP, the stock trades at a P/E of 12x/7.3x on FY21E/FY22E EPS and is trading at an EV of 5.9x/4x FY21E/FY22E EBITDA. We maintain BUY rating on the stock with a TP of Rs205.

prabhu


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: Jun 27, 2020 12:09 pm

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