Comments
Anand Rathi
PNC Infratech (Buy)
CMP: ₹166
Target: ₹213
Having started FY19 on a strong note, PNC Infratech’s industry-leading growth seems certain because of steady acceleration in its pace of execution, comfortable debt position and huge order backlog. Cash-flow generation is expected to be good enough to take care of equity requirement, whereas the under-levered balance sheet would mean equipment financing is resorted to for capex needs. Its strong growth, proven execution capabilities, a well-placed balance sheet and reasonable valuations are reasons enough to support our ‘buy’ call.
Valuation: As we revise our estimates to factor in stronger-than-expected inflows, raise capex and tweak debt, our FY19e earnings are up about 5 per cent, and largely unchanged for FY20.
Risk: Slower-than-expected pace of execution.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.