HDFC Securities maintains buy on PNC Infratech, target price Rs 340

HDFC Securities has maintained a Buy rating on PNC Infratech in the long term with a target price of Rs 340. Shares of PNC Infratech close 2.1% higher at Rs 191.8 on Tuesday while BSE Sensex closed 185.51 points up at 40,469.70.

Company FInancials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1340.95 crore, down -12.04% from last quarter sales of Rs 1524.52 crore. The company has reported net profit after tax of Rs 213.30 crore in the latest quarter.


Investment Rationale

According to the brokerage, PNC has been delivering robust performance for past six-seven quarters as entire order backlog worth Rs 98.7 billion has moved into execution. Also, as NHAI bidding picks up PNC is well placed to bag new orders. Net debt of PNC has reduced from Rs 4.4 billion in first quarter of FY20 to Rs 1.4 billion.