Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy PNC Infratech; target of Rs 255: ICICI Direct

ICICI Direct is bullish on PNC Infratech has recommended buy rating on the stock with a target price of Rs 255 in its research report dated August 16, 2019.

August 20, 2019 / 03:28 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on PNC Infratech

PNC Infratech’s (PNC) revenues grew significantly by 79.7% YoY to Rs 1,321.8 crore in Q1FY20 led by strong execution well ahead of our expectation of Rs 1,029.0 crore. PNC received bonus worth Rs 25 crore in Q1FY19. Adjusting for this base effect, EBITDA margins contracted 60 bps YoY to 13.6% but were broadly in line with our estimate of 13.8%. RPAT de-grew 2.3% YoY to Rs 100.2 crore in Q1FY20 on account of bonus receipts in Q1FY19 and higher tax rate in Q1FY20 (30.8% tax rate in Q1FY20 vs. 12.7% in Q1FY19). Adjusting for bonus receipts in Q1FY19, PNC reported strong PBT growth of 56.6% YoY to Rs 144.7 crore in Q1FY20.

Outlook

Hence, we maintain our BUY rating on the stock with a target price of Rs 255/share. We value its construction business at Rs 207/share (at 8x FY21E EV/EBITDA implying 15.2x FY21 EPS).

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: Aug 20, 2019 03:28 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