Buy PNC Infratech, target Rs 142 : Geojit BNP Paribas Financial Services

Geojit BNP Paribas Financial Services has a buy call on PNC Infratech Ltd. with a target price of Rs 142 .The current market price of PNC Infratech Ltd. is Rs 126.8 The time period given by the brokerage for PNC Infratech Ltd. price to reach defined target is is long term. PNC Infratech Ltd (PNC) is an Infrastructure construction, development and management company with a strong order book of Rs 5,101 crore (2.4x TTM revenue). Strong execution coupled with operational efficiency has helped to improve EBITDA margin by 200bps from FY11 to 13.2%in FY16. Revenue visibility is likely to improve further aided by upcoming NHAI and state EPC project pipeline. We expect a revenue growth of 22% CAGR and margins to be in the range of 13.2%-13.6% over FY16-18E. We value standalone business at a PE of 14x FY18E earnings and BOT projects at 1x P/B to arrive at SOTP price target of Rs 142.