FAST GROWING HIGHWAY STAR I A JACKPOT INFRA STOCK MAY RETURNS MULTI FOLD

PNC Infratech, together with its subsidiaries, is one of the front-ending Indian infrastructure construction, development, and management companies in the country. The company undertakes various infrastructure projects, including highways, bridges, flyovers, power transmission lines, airport runways and pavements, track construction for rail freight corridors, industrial area development, and other infrastructure projects with an established track record of successful execution of projects across sectors and geographies.

The Company's segments include engineering, procurement, and construction ("EPC") services on a fixed-sum turnkey basis as well as on an item rate basis It implements projects on various Public-Private-Partnership (PPP) formats, including Design-BuildFinance-Operate-Transfer (DBFOT), OperateMaintain-Transfer (OMT) and Hybrid models. There are very few infrastructure companies in the country that have such proven investment, development, construction, and management capabilities.

 It focuses on road-building projects in Punjab, Haryana, Tamil Nadu, Madhya Pradesh, Maharashtra, Karnataka, Rajasthan, Uttar Pradesh, Uttarakhand, West Bengal and North-Eastern India

The company was formerly known as PNC Construction Company Limited and changed its name to PNC Infratech Limited in August 2007. PNC Infratech Limited was founded in 1989 and is headquartered in Agra, India.

Some major clients include :

National Highway Authority of India

Airports Authority of India

RITES Limited

Military Engineering Services, (GOI)

Madhya Pradesh Road Development Corporation Limited

P.W.D. UP (World Bank Aided & other Projects)

UP Power Corporation Limited

Delhi State Industrial & Infrastructure Development Corporation Limited
Dedicated Freight Corridor Corporation of India Limited

This Stock must be in Portfolio for below mentioned Reason:-

Robust Order Book and diversified portfolio

Expertise and experience in project management

Strong & sharp execution capabilities which provides early completion    BONUS (3 to 6% project cost) leading profit margin expansion.

Strong financial performance and credit profile with clean Balance          sheet.

Better Working capital management  build a confidence of future            strong growth prospect.

Established relationship with public sector clientele and excellent  

pre-qualification   credentials

Integrated in-house design and engineering expertise, large fleet of        sophisticated equipment and experienced employee base

Highly qualified management team    

KEY FINANCIAL & IMPORTANT RATIOS TO ANALYSE INTRINSIC VALUATION

CMP : Rs.128     Market Cap:Rs.3264 Cr.     EPS-Rs.  11.57      Face Value- Rs 2

MAR’18     YEARLY
Net Sales (Cr)		(Profit Before Tax)PBT (Cr)				(Profit After Tax)PAT (Cr)
Mar’18  : 1857		Mar’18  : 234				Mar’18  :251
Mar’17  : 1689		Mar’17  : 194				Mar’17  :210
Change  : 10% (Up)		Change  :  20% (Up)				Change  :19.5  % (Up)
DEC’18     QUATERLY
NET SALES (Cr)		(Profit Before Tax)PBT (Cr)				(Profit After Tax)PAT (Cr)
Dec’18  :727		Dec’18  :66				Dec’18  :47
Dec’17  :472		Dec’17  :46				Dec’17  : 93 (* 47 Cr Tax Returned/Rebated)
Change : 54% (UP)		Change :44%(UP)				Change : 50% (Down) (  * @28% Tax paid & higher interest Paid for extra Loan to invest Pant & Mechineries)
DEC’18     9 MONTHLY
NET SALES (Cr)		(Profit Before Tax)PBT (Cr)				(Profit After Tax)PAT (Cr)
Dec’18  :2022		Dec’18  :228				Dec’18  :185
Dec’17  :1099		Dec’17  :97				Dec’17  :140
Change : 84%(UP)		Change : 135%(UP)				Change : 32%(UP)
52 weeks High / Low Ratio	187.4/122.45 =1.53		<2.2 is Good
Current Ratio	2.2		> 1.25 is Good,		A liquidity ratio that measures a company's ability to pay short-term obligations. The higher the current ratio, the more capable the company is of paying its obligations.
Quick Ratio (x)	1.99		> 1 is Good,		The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets
Sales growth	16.5 %		CAGR >15% for last 7-10 years		Growth should be consistent year on year. Ignore companies where sudden spurt of sales in one year is confounding the 10 years performance. Very high growth rates of >50% are unsustainable.
Price to Sales ratio (P/S ratio)	1.17		< 1.5 is Good		James O’Shaughnessy: Buy if P/S ratio is < 1.5 and sell if >3
Return On Asset (%)	9.55 (Net Profit/Fixed Asset=251/2824)		> 5% is Good, < 5% is Not Good		An indicator of how efficient management is at using its assets to generate earnings. Calculated by dividing a company’s annual earnings by its total assets
Return On Equity (%)	14.86 (Net Profit/Networth 251/1807)		> 10% is Good,		Also called Return on networth, it measures a company’s profitability by revealing how much profit a company generates with the money shareholders have invested, it is calculated by dividing the net profit after tax by shareholder's fund For high growth companies you should expect a higher ROE.
Cash Flow from Operation	321 Cr		CFO>0		Positive CFO necessary
Tax Payout	-7 % ( PNC received a one-time | 47.2 crore tax rebate in Q3FY18)		>30% Good		Tax rate should be near general corporate tax rate unless some specific tax incentives are applicable for the company.
Profitability (Net profit Margin)	13.52 %		>8 is Good		Look for companies with sustained operating profit & net profit margins over the years
P/E ratio	11.6 Industry P/E 22.53		<Industry P/E is Good.		P/E ratio is the most widely used parameter to analyze whether the stock of any company is overvalued or undervalued at any point of time. It is calculated by dividing the current market price (CMP) of a stock by profit/earnings per share (EPS).
Dividend Yield (%)	0.39		> 0 is Good, Higher is better		A financial ratio that shows how much a company pays out in dividends each year relative to its share price. Dividend yield is calculated as annual dividends per share divided by market price per share.
P/E to Growth ratio (PEG ratio)	0.43		<1 is Good		The price/earnings to growth ratio (PEG ratio) is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine a stock's value while taking the company's earnings growth into account, and is considered to provide a more complete picture than the P/E ratio.
Promoter shareholding	56.07% (Public only 2.83%)		> 30% (Must)		Higher the better
Interest Coverage Ratio	7.87		> 2 is Good, (For Banks & NBFC this is not Valid)		It is used to determine how easily a company can pay interest on outstanding debt. It is calculated by dividing a companys EBIT by the interest expenses.
Debt Equity Ratio	0.09		< 1 is Good, (For Banks & NBFC this is not Valid)		A measure of a company's financial leverage is calculated by dividing its total liabilities by stockholders' equity. The debt/equity ratio also depends on the industry in which the company operates.
FUTURE GROWTH ESTIMATION
Crore	FY 2019 (E)			FY 2020 (E)			FY 2021 (E)
Revenue	2864			4141			4641
Net Profit	220			302			330
Earning/Share	8.55			11.75			12.8

Technically the stock is bouncing from its strong support level @ 128. Maintain stop loss at this level & wait for reenter at 100 level. Resistance levels are 153/167/185.

Disclaimer: I am not a SEBI registered analyst. My view is only to Educate retail investor to invest in the stock market Safely & wisely. This is not any recommendation, only for Education purpose. Before investing contact your financial advisor.