JM Financial and Geojit Financial have outlined their bullishness on this leading infrastructure-based company. In this article, we will discuss about the rationale behind this upgrade.
With a market capitalization of Rs 8,044 crores, the shares of PNC Infratech Ltd are currently trading at Rs 314 per share, down by 41.8 percent from its 52-week high of Rs 539 per share. Over the past five years, the stock has delivered a return of 151 percent.
Leading brokerage, JM Financial, has lowered its target price to Rs 450 per share, down from Rs 470 per share earlier, signalling an upside potential of 43.31 percent from its current level.
It cited robust growth in FY25 along with a healthy balance sheet. Monetization proceeds in FY26E are expected to provide strong growth capital, positioning PNC as a key beneficiary of the anticipated surge in order inflows.
On the other hand, Geojit Financial Services has set a price target of Rs 386 per share, signalling an upside of 23 percent from its current level. It cited that PNC Infratech currently has a very strong order book of Rs 17,792 crore (3.2x of its standalone FY25 revenue), and hence, PNC has strong revenue visibility as well.
Post lifting of the NHAI ban, PNC can bid again for NHAI and MoRTH projects. The management expects to achieve Rs 15,000 crore of new orders in FY26. PNC’s FY25 Q4 revenues declined by 39.6 percent YoY due to delays in execution, and it expects overall FY26 revenue growth of 20 percent with an EBITDA margin of 13 percent. PNC is also diversifying into railways and water, where water has already made up around 17 percent of the order book.
Financial Highlights
The company reported a revenue of Rs 6,769 crores in FY25, down by 21.74 percent from its FY24 revenue of Rs 8,650 crores. Additionally, it reported a net profit decline of 10.34 percent to Rs 815 crores in FY25 from Rs 909 crores in FY24.
The company delivered an ROE and ROCE of 14.60 percent and 14.31 percent respectively, and is currently trading at a P/E of 9.94x as compared to its industry average of 23.46x.
PNC Infratech Limited is one of the front-end infrastructure development, construction, and management companies in the country. The company undertakes infrastructure projects, including highways, bridges, flyovers, power transmission lines and towers, airport runways, industrial area development, and other infrastructure activities.
Written by Satyajeet Mukherjee
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