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SMR
07-01-2015, 08:40 AM
PNC Infratech, Ltd., is an India-based construction company. The Company engages in the construction of highways, runways, bridges, flyovers and power transmission lines. Its projects include BOT / DBFOT Project, highway construction, airport runways, bridge construction, power sector, and waste management / water supply project under execution. It provides construction projects for core organizations including Military Engineer Service and Public Works Department of various State Governments in India.

Official website: www.pncinfratech.com

SMR
07-01-2015, 08:42 AM
PNC Infratech (PNC) reported a top-line and bottom-line growth of 12.2% and 11.2% yoy, respectively, for 4QFY2015. The top-line growth was led by strong execution of in-house BOT projects (Rae Bareli-Jaunpur, Kanpur-Kabrai & Ghaziabad-Aligarh) and Agra bypass projects. On the operating front, PNC impressed us by reporting a 39bp yoy expansion in the EBITDA margin to 13.2% for the quarter. Surge in yoy EBITDA margins is mainly on account of decline in other expenses. Despite EBITDA growth, a 24.6% yoy increase in depreciation expenses and 29.2% yoy increase in interest expenses restricted PAT growth to 11.2% yoy. PAT margin for the quarter was flat on a yoy basis at 7.1%. PNC’s unexecuted order book as of 4QFY2015 stands at Rs3,447cr, which gives revenue visibility for over the next 6-8 quarters. With 2 more BOT projects commencing toll operations in FY2016 in addition to the 2 having started operations recently, and with the Management indicating that it does not intend to add any new BOT projects in FY2016 (unless very lucrative project in north India comes up within the ticket size of Rs500cr), we are of view that PNC’s consolidated D/E ratio would peak out in FY2017E. Outlook and valuation: Considering the strong uptick in Roads & Highways EPC award activity from here on, especially in North India where PNC has more comfort, and considering PNC’s past execution track record, we are of the view that the standalone entity would report ~13% and ~20% top-line and bottom-line CAGR, respectively, during FY2015-2017E. This, coupled with the likelihood of 2 more BOT projects commencing operations in FY2016E in addition to the 2 having started operations recently, leads us to estimate that the consolidated Balance Sheet should peak from FY2017E onwards, which is comforting. Using SoTP based valuation methodology we arrive at FY2017E based price target of Rs445. Given the upside potential, we maintain our Buy rating on the stock.

Source: http://www.angelbroking.com

SMR
08-13-2015, 07:10 AM
For 1QFY2016, PNC Infratech (PNC) reported a top-line and bottom-line growth of 14.9% and 14.8% yoy, respectively. Top-line growth was driven by strong execution seen across Rae Bareli-Jaunpur and Agra-Firozabad project. On the operating front, PNC impressed us by reporting 141bp yoy expansion in EBITDA margins to 12.2% for the quarter. Surge in yoy EBITDA margins is mainly owing to just 8.1% yoy increase in raw material expenses. Despite 29.9% yoy EBITDA growth, 39.6% increase in interest expenses and 17.6% increase in tax expenses, restricted PAT growth to 14.8%. 1QFY2016 PAT margins were flat on yoy basis at 6.1%. PNC’s unexecuted order book as of 1QFY2016 stands at Rs3,180cr, which gives revenue visibility for over the next 6-8 quarters. With 2 more BOT projects expected to commence operations in FY2016 (in addition to 2 recently started), and Management indicating that it does not intend to add any new BOT projects in FY2016 (unless a lucrative project in north India comes up within ticket size of Rs500cr), we are of the view that PNC’s consolidated D/E ratio would peak out in FY2017E. Outlook and Valuation: Considering the strong uptick in Roads & Highways EPC award activity especially in North India, where PNC has more comfort, their past track record and recent wins, we expect the standalone entity to report 16.9% and 23.4% top-line and bottom-line CAGR, respectively, over FY2015-2017E. This, coupled with the likelihood of 2 more BOT projects commencing operations in FY2016E, leads us to estimate that consolidated Balance Sheet should peak from FY2017E onwards, which is comforting. Using SoTP based valuation methodology we arrive at FY2017E based price target of Rs522. Given the 17% upside, we maintain our Buy rating on the stock.

Source: http://www.angelbroking.com/