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Dolat Capital Report
PNC Infratech Ltd. reported results broadly in line with estimates.
PNC Infra posted 8.5%/ 10%/ 6.6% YoY growth in revenue/ Ebitda/ adjusted profit after tax to Rs 16.9 billion/ Rs 2.3 billion/ Rs 1.4 billion in Q2 FY24. Ebitda margin expanded by 18 basis points YoY to 13.4% primarily led by lower raw material cost, which was partially offset by higher employee cost.
We expect revenue/ adjusted profit after tax compound annual growth rate of 7.5%/ 6.8% over FY23-26E, with Ebitda margin of 13.3%/ 13.3%/ 13.2% for FY24E/ FY25E/ FY26E.
We maintain our earnings per share estimates for FY24E. However, we reduce FY25E EPS estimates by 5.3% considering lower order inflows in FY24E and introduce FY26E.
Stock trades at attractive core construction valuations and stock has corrected by ~8% since our last update note on August 12, 2023. Thus, we maintain 'Accumulate' with revised SOTP of Rs 393.
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