PNC Infratech Q4 Results Review - Outperforms Expectations: Nirmal Bang

Nirmal Bang Report

PNC Infratech Ltd.'s Ebitda numbers deviated by ~86% from our estimates (actual/estimate: Rs 5,652 million/Rs 3,042 million) due to a decline in overall expenses.

While the management expects an order inflow of Rs 80-100 billion, it has guided for a rather conservative 10% growth in revenue and lower Ebitda margin of 12-12.5% in FY25 vs 16% in FY24. The company is likely to spend ~Rs 1-1.2 billion in capex in FY25.

The industry is hopeful that bidding and awarding activity will pick up after the conclusion of ongoing general elections and large number of projects would be awarded during FY25.

The NHAI has floated 150+ projects with an aggregate of Rs 1,500 billion and the company will participate for bidding in the projects worth Rs 100 billion.

While we remain positive about the sector, the stock has climbed 25% since April 2024. We have increased the multiple from 12 times to 13 times - the highest in three years and five years.

We have downgraded the stock to “Accumulate” and it at a P/E of 13 times on FY26E EPS and built-operate-transfer/hybrid annuity model projects at 0.6 times price/book.

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