JM Financial maintains Buy on PNC Infratech, lowers target price to Rs 450

JM Financial maintains Buy on PNC Infratech with a revised target price of Rs 450 (Rs 470 earlier). The current market price of PNC Infratech is Rs 300.15. The time period given by the analyst is a year when PNC Infratech price can reach the defined target. PNC Infratech, incorporated in 1999, is a Mid Cap company with a market cap of Rs 7651.28 crore, operating in infrastructure sector.

PNC Infratech's key products/revenue segments include Contract Revenue, Material for the year ending 31-Mar-2024.

Financials
For the quarter ended 31-03-2025, the company has reported Consolidated Total Income of Rs 1766.63 crore, up 16.83% from last quarter Total Income of Rs 1512.19 crore and down -32.68% from last year same quarter Total Income of Rs 2624.15 crore. The company has reported net profit after tax of Rs 75.44 crore in the latest quarter.

The company's top management includes Mr.Pradeep Kumar Jain, Mr.Ashok Kumar Gupta, Ms.Deepika Mittal, Mr.Subhash Chander Kalia, Mr.Krishan Kumar Jalan, Mr.Talluri Raghupati Rao, Mr.Anil Kumar Rao, Mr.Yogesh Kumar Jain, Mr.Chakresh Kumar Jain, Mr.Gauri Shankar. Company has NSBP & Co. as its auditors. As on 31-03-2025, the company has a total of 26 crore shares outstanding.

Investment Rationale
JM Financial likes PNC Infratech for its track record of delivering robust growth while preserving balance sheet. Monetization proceeds in FY26E provide significant growth capital and places PNC as major beneficiary of expected pick-up in ordering activity. Given the delay in receipt of appointed dates, the brokerage has lowered revenue leading to EPS cut of 4%/3% in FY26/27E. Having said that, they expect robust EPS CAGR of 43% over FY25-27E. Valuations at 11x/9.5x FY26/27E EPS remain attractive. JM Financial values EPC business at 13x FY27 EPS and assets at Rs 59/share to arrive at SOTP based revised price target of Rs 450 (earlier Rs 470). Maintain Buy.

Promoter/FII Holdings
Promoters held 56.07 per cent stake in the company as of 31-Mar-2025, while FIIs owned 7.1 per cent, DIIs 26.26 per cent.