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
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
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Net Sales (Cr)
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(Profit Before Tax)PBT (Cr)
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(Profit After Tax)PAT (Cr)
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Mar’18 : 1857
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Mar’18 : 234
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Mar’18 :251
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Mar’17 : 1689
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Mar’17 : 194
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Mar’17 :210
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Change : 10% (Up)
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Change : 20% (Up)
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Change :19.5 % (Up)
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DEC’18 QUATERLY
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NET SALES (Cr)
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(Profit Before Tax)PBT (Cr)
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(Profit After Tax)PAT (Cr)
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Dec’18 :727
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Dec’18 :66
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Dec’18 :47
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Dec’17 :472
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Dec’17 :46
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Dec’17 : 93 (* 47 Cr Tax Returned/Rebated)
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Change : 54% (UP)
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Change :44%(UP)
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Change : 50% (Down)
( * @28% Tax paid & higher interest Paid for extra Loan to invest Pant & Mechineries)
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DEC’18 9 MONTHLY
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NET SALES (Cr)
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(Profit Before Tax)PBT (Cr)
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(Profit After Tax)PAT (Cr)
|
|||||
Dec’18 :2022
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Dec’18 :228
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Dec’18 :185
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Dec’17 :1099
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Dec’17 :97
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Dec’17 :140
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Change : 84%(UP)
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Change : 135%(UP)
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Change : 32%(UP)
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52 weeks High / Low Ratio
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187.4/122.45
=1.53
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<2.2 is Good
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Current Ratio
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2.2
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> 1.25 is Good,
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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.
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Quick Ratio (x)
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1.99
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> 1 is Good,
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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
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Sales growth
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16.5 %
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CAGR >15% for last 7-10 years
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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.
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Price to Sales ratio (P/S ratio)
|
1.17
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< 1.5 is Good
|
James O’Shaughnessy: Buy if P/S ratio is < 1.5 and sell if >3
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Return On Asset (%)
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9.55
(Net Profit/Fixed Asset=251/2824)
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> 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
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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.
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Cash Flow from Operation
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321 Cr
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CFO>0
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Positive CFO necessary
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Tax Payout
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-7 % ( PNC received a one-time | 47.2 crore tax rebate in Q3FY18)
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>30% Good
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Tax rate should be near general corporate tax rate unless some specific tax incentives are applicable for the company.
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Profitability
(Net profit Margin)
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13.52 %
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>8 is Good
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Look for companies with sustained operating profit & net profit margins over the years
|
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P/E ratio
|
11.6
Industry P/E 22.53
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<Industry P/E is Good.
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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).
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Dividend Yield (%)
|
0.39
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> 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.
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P/E to Growth ratio (PEG ratio)
|
0.43
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<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.
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Promoter shareholding
|
56.07%
(Public only 2.83%)
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> 30% (Must)
|
Higher the better
|
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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.
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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.
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FUTURE GROWTH ESTIMATION
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Crore
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FY 2019 (E)
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FY 2020 (E)
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FY 2021 (E)
|
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Revenue
|
2864
|
4141
|
4641
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Net Profit
|
220
|
302
|
330
|
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Earning/Share
|
8.55
|
11.75
|
12.8
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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.
