Stock of this small cap real estate company got a buy recommendation from a well known brokerage based in India. In the past month the company’s stock has gained more than 15%.
At 11:00 a.m, the shares of PNC Infratech Limited were trading at Rs 376, gaining around 2 percent as compared to the previous closing levels of Rs 370, with a market capitalization of 9,656 Cr.
During the last six months, the company’s stock has paced up and gained more than 40 percent from Rs 265.10 in March 2023 to the current price levels.
ICICI Direct, one of the well-known Investment Banks , has given a ‘Buy’ tag to the company’s stock for the next 12 months with a target price of Rs 460 indicating a potential upside of 23 percent as compared to the closing stock price levels.
The rationale behind providing such a recommendation pertains to various trigger points comprising strong order book, healthy revenue visibility, funding of their hybrid-annuity mode (HAM) projects,etc.
According to the recent financials of the company, it has reported an increase in the revenue from 7,021 Cr FY22 to 7,898.28 in FY23. Moreover, the company’s net profits have increased from 580 Cr to 658 Cr.
Due to the increase in the raw material cost, the profitability ratios of the company have slightly gone down with the return on equity (ROE) declining from 17.37 percent to 16.64 percent, and the return on capital employed (ROCE) reducing from 15.74 percent to 15.05 percent.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold a 56.07 percent stake, and the Foreign Institutional Investors (FIIs) hold a 10.26 percent stake in the company.
PNC Infratech Limited provides infrastructure implementation solutions that include engineering, procurement, and construction (“EPC”) services and it executes O&M services on a fixed-sum turnkey basis.
Written by: Bharath K.S
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