Feb'25 View on PNC Infratech Ltd

PNC Infratech Limited was incorporated on 9th August 1999 as PNC Construction Company Private Limited. The Company was converted into a limited company in 2001 and was renamed PNC Infratech limited in 2007. PNC Infratech Limited is one of the front-ending 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. Though the stock is still showing weakness, it is now likely to reverse the trend and rise above 300 basis the following inputs • EBITDA margin at 12.1% (-120bps/+50bps yoy/qoq); 50 bps better than our estimates. • The management is positive on adding Rs13-15K cr of new orders in FY25 based on ~Rs1.3 lakh cr of road projects expected to come for bidding in the next 5-6 weeks. • PNC’s Q3FY25 standalone result was lower than estimates due to weak execution. • Reduction in ban period by MoRTH is positive; to help in meeting order inflows targets. • The company expects revival in execution in FY26 and expects over 35% yoy growth. • We downgrade earnings estimates for FY25-27E by 6-8%.