PNCINFRA - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.2

📊 PNC Infratech Ltd (PNCINFRA) — Long-Term Investment Analysis

✅ Strengths

Valuation Comfort: P/E of 10.1 vs Industry PE of 23.8 — significantly undervalued.

PEG Ratio (0.74): Indicates strong earnings growth relative to valuation.

ROE (14.6%) & ROCE (14.3%): Solid capital efficiency for an infra EPC player.

EPS (₹31.8): Strong earnings base.

Institutional Interest: FII holdings slightly up (+0.04%), DII marginally down (–0.36%).

Recent Wins: Secured ₹239.94 Cr flyover project and ₹300 MW solar project from NHPC

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⚠️ Risks & Weaknesses

High Debt-to-Equity (1.56): Leverage is elevated, typical for infra firms but worth monitoring.

Dividend Yield (0.19%): Minimal income generation.

Quarterly PAT Decline (–80.9%): Sharp drop due to execution delays and monsoon impact

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MoRTH Tender Ban: Disqualified from central road tenders for 1 year due to regulatory issues

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📈 Ideal Entry Price Zone

Current Price: ₹319

52-Week Range: ₹236 – ₹520

Suggested Entry Zone: ₹290 – ₹310

Based on breakout retest levels and technical support zones

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RSI at 60.4 and MACD positive suggest mild bullish momentum.

🧭 Long-Term Investment Outlook

PNC Infratech is a moderately strong long-term candidate, especially if it navigates the MoRTH ban effectively. Its diversified infra portfolio, strong order book (~₹19,000 Cr), and asset monetization strategy support future growth

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Price Targets (Machine Learning Estimates)

Year Target 1 Target 2

2025 ₹343 ₹348

2026 ₹421 ₹428

2027 ₹505 ₹513

2030 ₹946 ₹960

🛣️ Exit Strategy (If Already Holding)

If Bought Above ₹400

Exit near ₹365–₹384 on rallies.

Reassess post-MoRTH ban expiry and Q2 results.

If Bought Below ₹300

Hold for 3–5 years, targeting ₹500–₹900.

Consider partial profit booking near ₹520–₹550.

Monitoring Metrics

ROE/ROCE trend (target >15%)

Debt reduction trajectory

Order inflow from non-MoRTH segments

Execution speed and working capital cycle

Would you like a comparison with peers like GR Infraprojects or IRB Infra to benchmark PNCINFRA’s valuation and growth potential?

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in.tradingview.com

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concallanalysis.com

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www.cnbctv18.com

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www.business-standard.com

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