PNC Infratech - Q4FY20 Result Update - ICICI Securities

PNC Infratech (PNC) reported a resilient Q4FY20 operating performance. Revenues grew 7.6% YoY to Rs. 1157.9 crore in Q4FY20. EBITDA margins at 13.5%, down 55 bps YoY, were better than our estimate of 13%. PAT came in at Rs. 76.1 crore (down 45.6% YoY) vs. expectation of Rs. 58.5 crore, with beat led by superior EBITDA. The decline in PAT on a YoY basis, was largely owing to ~Rs. 66 crore reversal of tax paid in earlier years, in the base quarter (Q4FY19). On a PBT basis, the decline was modest 6.5% YoY.

Valuation & Outlook

PNC remains our preferred pick in the EPC space given its robust order book, comfortable working capital cycle, healthy return ratios and lean balance sheet. Notwithstanding near term hiccups on account of Covid-19, PNC is likely to tide over with resilient fundamentals. While monetisation of BOT/HAM assets could be delayed in near term, we do not see it as a major issue with sufficient internal accruals from current order book enough for equity infusion. Hence, we maintain our BUY rating on the stock with a revised SoTP target price of Rs. 175/share. We value its construction business at Rs. 137/share (at 4.5x FY22E EV/EBITDA implying 8.5x FY22 EPS).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_PNCInfra_Q4FY20.pdf

Shares of PNC Infratech Ltd was last trading in BSE at Rs.143.5 as compared to the previous close of Rs. 143.3. The total number of shares traded during the day was 24570 in over 1051 trades.

The stock hit an intraday high of Rs. 145.8 and intraday low of 142. The net turnover during the day was Rs. 3528197.

Source : Equity Bulls

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