PNCINFRA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | PNCINFRA | Market Cap | 6,015 Cr. | Current Price | 235 ₹ | High / Low | 332 ₹ |
| Stock P/E | 16.4 | Book Value | 219 ₹ | Dividend Yield | 0.25 % | ROCE | 18.2 % |
| ROE | 13.5 % | Face Value | 2.00 ₹ | DMA 50 | 256 ₹ | DMA 200 | 285 ₹ |
| Chg in FII Hold | -0.04 % | Chg in DII Hold | -0.29 % | PAT Qtr | 82.4 Cr. | PAT Prev Qtr | 80.8 Cr. |
| RSI | 34.8 | MACD | -4.61 | Volume | 2,46,396 | Avg Vol 1Wk | 1,90,290 |
| Low price | 234 ₹ | High price | 332 ₹ | PEG Ratio | 1.01 | Debt to equity | 0.14 |
| 52w Index | 0.82 % | Qtr Profit Var | 1.82 % | EPS | 14.4 ₹ | Industry PE | 17.6 |
📊 Core Financials:
- Profitability: PAT at 82.4 Cr. vs 80.8 Cr. shows stable growth (+1.82%).
- ROE: 13.5% and ROCE: 18.2% → healthy efficiency levels.
- Debt: Debt-to-equity at 0.14 → low leverage, strong financial stability.
- Cash Flows: Dividend yield of 0.25% is modest, reinvestment focus.
💹 Valuation Indicators:
- P/E: 16.4 vs Industry PE of 17.6 → fairly valued.
- P/B: Current Price / Book Value ≈ 1.07 → attractive valuation.
- PEG Ratio: 1.01 → balanced growth-adjusted valuation.
- Intrinsic Value: Estimated fair value closer to 250–270 ₹.
🏢 Business Model & Competitive Advantage:
PNC Infratech operates in infrastructure development, focusing on roads, highways, and EPC projects.
Strong execution track record, diversified project portfolio, and government contracts provide stability.
Competitive advantage lies in operational efficiency, low leverage, and established presence in road construction.
🎯 Entry Zone & Long-Term Guidance:
- Entry Zone: 230–250 ₹ (near support and intrinsic value).
- Long-Term Holding: Suitable for investors seeking exposure to infrastructure growth with moderate risk and steady returns.
Positive
- 🌟 Healthy ROE (13.5%) and ROCE (18.2%)
- 🌟 Low debt-to-equity (0.14)
- 🌟 Attractive P/B valuation (~1.07)
- 🌟 Stable PAT growth (+1.82%)
Limitation
- ⚠️ Modest dividend yield (0.25%)
- ⚠️ RSI at 34.8 indicates weak momentum
- ⚠️ Stock trading below DMA 50 and DMA 200
- ⚠️ Slight reduction in FII (-0.04%) and DII (-0.29%) holdings
Company Negative News
- 📉 Weak technical indicators (MACD -4.61, RSI 34.8)
- 📉 Stock trading near 52-week low (234 ₹)
- 📉 Institutional investors reduced holdings
Company Positive News
- 📈 PAT growth from 80.8 Cr. to 82.4 Cr.
- 📈 Strong execution track record in infrastructure projects
- 📈 Low leverage supports financial stability
Industry
- 🏦 Infrastructure sector supported by government spending and urbanization
- 🏦 Industry PE at 17.6 reflects moderate optimism
- 🏦 Road and highway construction demand remains strong
Conclusion
✅ PNC Infratech is a fundamentally stable company with low leverage, healthy returns, and fair valuation.
Technical weakness and modest dividend yield are limitations, but long-term prospects remain positive with infrastructure growth.
Recommended as a long-term hold with entry around 230–250 ₹ for investors seeking steady exposure to infrastructure development.