Buy PNC Infratech; target of Rs 182: ICICI Securities

Moneycontrol • 2 days ago

Original source

Key Investment Pillars

  • PNC Infratech's revenue growth is expected to be driven by a robust order book of INR 180bn, with an executable order book of INR 166bn.
  • The company's EBITDA margin has improved to 12.1%, in line with management's guidance, and is expected to remain stable.
  • PNC Infratech has secured INR 42bn of new orders in H1FY27 and remains confident of achieving its order inflow target of INR 120-150bn for the year.
  • The company's foray into new segments like renewable energy and mining is a key monitorable, given the execution risks involved.

Thesis Validation Checklist

  • Investors should watch for the company's ability to execute its order book and achieve its order inflow targets.
  • The final outcome of the high court's decision on the debarment order by NHAI is a key overhang on the stock.
  • Margin stability and the company's ability to maintain its EBITDA margin at around 12% will be crucial.
  • Any significant deviations from the company's guidance on revenue and order inflows could impact the stock price.