Stock buy recommendation for 31% gain
Posted: Wed Apr 12, 2017 12:37 pm
PNC Infratech Ltd - BUY
CMP: Rs 131; 1 year Target: Rs 173; Upside: 31.8%
We have a Buy rating on the stock due to following reasons 1) robust order backlog 2) strong uptick in roads and highways EPC award activity especially in north India 3) strong execution capabilities 4) lean balance sheet with tight working capital control. We value its standalone EPC business at 15x on FY19E earnings and valued its BOT business using DCF methodology to arrive at the 12 months SOTP based target price of Rs 173.
IIFL Amar Ambani
CMP: Rs 131; 1 year Target: Rs 173; Upside: 31.8%
We have a Buy rating on the stock due to following reasons 1) robust order backlog 2) strong uptick in roads and highways EPC award activity especially in north India 3) strong execution capabilities 4) lean balance sheet with tight working capital control. We value its standalone EPC business at 15x on FY19E earnings and valued its BOT business using DCF methodology to arrive at the 12 months SOTP based target price of Rs 173.
IIFL Amar Ambani