Buy This Midcap Infra Stock For 36% Potential Upside, Recommended By HDFC Securities

HDFC Securities maintains its bullish outlook on PNC Infratech Ltd. (PNC), a midcap Infrastructure sector stock. The brokers say "Buy" the stock with a target price of Rs 426 apiece. The brokerage sees a potential upside of 36% from its current level if purchased now. PNC Infra's market valuation is Rs 8,038.65 crore. Check below to know more:

Stock Outlook, Return, 52-Week Low/High

The current share price of the stock on NSE is Rs 313.35 apiece, down 0.57% from its previous close. It recorded its 52 week low on 17 June 2022 at Rs 219 apiece and 52 week high on 3 February 2023 at Rs 352 apiece, respectively.

The stock has fallen 5.97% in one week, and 3.51% in 1 month, respectively. It gained 15.91% in 3 months, 13.86% in 1 year and 58.02% in 3 years, respectively. It gave the highest 86.63% positive return in 5 years.

 

HDFC Securities Suggest Buy For Rs 426/share target price

According to HDFC Securities, PNC Infratech (PNC) reported Q3FY23 revenue/EBITDA/APAT at INR 16.3/2.1/1.3bn, missing our estimates on all fronts by 5/7.9/10.1%. PNC expects ~90-95% of JJM water projects to be executed by FY25-end. PNC has maintained its revenue growth guidance of 10% YoY and EBITDA margin guidance of 13.3- 13.5% for FY23 and 10-15% revenue growth and 13.3-13.5% EBITDA margins for FY24. With a cash balance of INR 3.7bn and standalone gross debt of INR 1.5bn, PNC has a net cash balance of INR 2.2bn as of Dec'22 vs. INR 2.4bn as of Sep'22. Capex guidance for FY23 is INR 1-1.2bn, with INR 370mn incurred in 9MFY23. "Given a strong OB and comfortable balance sheet, we maintain BUY, with an increased TP of INR 426/sh (15x Dec-24E rolled over, 1x P/BV for HAM equity investment)," the brokerage has said.

 

 

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.