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3 Stocks With Strong Support For Short Term Investors To Park funds
|PNC Infratech||Rs 250||6.41TCr||41.96%|
PNC Infratech Ltd., founded in 1999, is a Mid Cap business in the Infrastructure sector with a market capitalization of Rs 6,298.04 crore.
PNC Infratech's (PNC) performance was outstanding, with a better topline and margins than planned, thanks to operating leverage. The topline increased by 42 percent year over year to Rs 1644 crore, owing to an enhanced executable order book and optimal labour availability. Operating leverage drove the resultant margin to 14.1 percent. Despite higher taxation, PAT increased by 70% year over year to Rs 129.4 crore. This was due to improved operating performance, lower interest costs, and lower interest costs.
With a Stop target price of Rs 300/share, ICICI Securities' BUY rating is unchanged. The company's construction business is worth Rs 253/share (6.5x FY23E EV/EBITDA or 12x FY23 EPS), according to the brokerage.
Nirlon's results in FY21 was subdued. In FY21, revenues increased by 2.2 percent year on year to | 316.9 crore. It was Rs 77.1 crore in Q4FY21, down 6% year on year. Occupancy was down QoQ at 95.2 percent, compared to 97.5 percent in Q3, as one significant licensee moved out after their licence expired. EBITDA for FY21 increased by 2.7 percent year on year to | 237.2 crore. PAT increased 16.4% YoY to Rs127.4 crore in FY21, boosted by cheaper interest due to capitalization.
ICICI Securities advises buying at Rs.309 with a target price of Rs.400.
The stock maintains a BUY rating, with a NAV-based target price of Rs 400/share. We use a 9 percent cap rate and a 15% discount rate in our valuations to be careful. We believe the stock has a lot of value because the expected expansion isn't accounted for in the CMP, as per the brokerage.
In Q4FY21, Bata India's revenue recovery rate (adjusted) was 80 percent, up from 74 percent in Q3FY21. Lower revenues from formal and fashion footwear continued to have an impact on gross margins year over year, however, gross margins improved QoQ. In Q4FY21, revenue declined 5% year on year to | 589.9 crore.
Bata changed their product line from formals and fashion to casuals, fitness, and essentials to match the present market condition.
"We believe Bata's strong brand loyalty and pan-India retail reach will allow for faster revenue recovery and improved profitability.
Over FY20-23E, we forecast a 100 basis point increase in margin to 28.2 percent and a 450 basis point increase in RoCE to 32.7 percent. With a revised target price of | 1925 (48x FY23E EPS, previously TP: | 1680), we upgrade the stock from HOLD to BUY," the brokerage said.
Views mentioned herein are taken from the brokerage report of ICICI Securities. Neither the author, nor the brokerage nor Greynium Information Technologies would be responsible for losses incurred based on the article. Please consult a professional advisor. Investing in stock markets is risky.