2QFY2016 Result Update | Infrastructure
November 9, 2015
PNC Infratech
ACCUMULATE
CMP
`522
Performance Highlights
Target Price
`558
Quarterly highlights - Standalone
Investment Period
12 Months
Y/E March (` cr)
2QFY16 1QFY16
% chg (qoq) 2QFY15
% chg (yoy)
Net sales
463
426
8.5
319
45.1
Stock Info
EBITDA
54
52
3.8
39
38.7
Sector
Infrastructure
Reported PAT
30
26
16.6
21
43.4
Market Cap (` cr)
2,681
Source: Company, Angel Research
Net debt (` cr)
303
Beta
1.3
PNC Infratech (PNC) reported a top-line and bottom-line growth of 45.1% and
52 Week High / Low
538/346
43.4% yoy, respectively, for 2QFY2016. Top-line growth was driven by strong
Avg. Daily Volume
10,653
execution across Agra-Firozabad and other road projects. Higher dependency on
Face Value (`)
10
sub-contracting led PNC to report 50bp yoy decline in its EBITDA margin to
11.7%, for the quarter. A 38.7% yoy EBITDA growth coupled with 55.3% decline
BSE Sensex
26,565
in interest expenses led the PAT to grow by 43.4% yoy. PAT margin, at 6.6% for
Nifty
7,954
the quarter, was marginally down on a yoy basis.
Reuters Code
PNCI.BO
Bloomberg Code
[email protected]
PNC’s unexecuted order book as of 2QFY2016 stands at `3,578cr (order book
to LTM sales ratio stands at 2.1x).
One more BOT is expected to commence operation in FY2016 in addition to 3
Shareholding Pattern (%)
already started in YTDFY2016. Management has indicated that it does not intend
Promoters
56.1
to add any new BOT projects in FY2016 unless a lucrative project in north India
MF / Banks / Indian Fls
13.8
comes up within the ticket size of `500cr. As a result, we are of the view that
FII / NRIs / OCBs
6.4
PNC’s consolidated D/E ratio would peak out in FY2017E.
Indian Public / Others
23.7
Outlook and Valuation: Considering the strong uptick in roads and highways
EPC award activity especially in North India, where PNC has more comfort, and
Abs. (%)
3m 1yr 3yr
given its past track record and recent wins, we expect the standalone entity to
Sensex
(7.0)
(5.8)
39.0
report 21.1% and 28.5% top-line and bottom-line CAGR, respectively, over
PNC Infratech
11.2
NA NA
FY2015-2017E. This, coupled with the likelihood of 1 BOT project commencing
*NA as PNC listed on May 26, 2015
operation in FY2016E, leads us to estimate that the consolidated Balance Sheet
should peak from FY2017E onwards, which is comforting. Using SoTP based
3-Year Daily Price Chart
valuation methodology we arrive at a FY2017E based price target of `558.
540
Given the 7% upside in the stock form the current levels, we maintain our
520
500
Accumulate rating on the stock.
480
460
Key financials (Standalone)
440
420
Y/E March (` cr)
FY13
FY14
FY15
FY16E
FY17E
400
380
Net Sales
1,303
1,145
1,561
1,873
2,288
360
340
% chg
2.3
(12.1)
36.3
20.0
22.2
Net Profit
76
67
100
121
166
% chg
(3.3)
(12.6)
50.2
20.2
37.5
Source: Company, Angel Research
EBITDA (%)
11.9
12.2
13.9
13.2
13.5
EPS (`)
19
17
25
24
32
P/E (x)
27.2
31.1
20.7
22.2
16.2
P/BV (x)
3.7
3.3
2.9
2.1
1.9
RoE (%)
14.4
11.2
14.9
12.1
12.3
RoCE (%)
17.7
15.0
20.2
17.3
17.6
Yellapu Santosh
EV/Sales (x)
1.7
1.9
1.5
1.5
1.3
022 - 3935 7800 Ext: 6811
EV/EBITDA (x)
14.6
15.9
11.0
11.6
9.4
[email protected]
Source: Company, Angel Research; Note: CMP as of November 6, 2015
Please refer to important disclosures at the end of this report
1
PNC Infratech | 2QFY2016 Result Update
Exhibit 1: Quarterly Standalone Performance
Particulars (` cr)
2QFY16
1QFY16
% chg (qoq) 2QFY15
% chg (yoy) 1HFY16 1HFY15
% chg (yoy)
Net Sales
463
426
8.5
319
45.1
889
690
(53.8)
Total Expenditure
408
374
9.1
280
46.0
783
611
(54.2)
Cost of materials consumed
351
302
16.2
248
41.3
652
549
(54.8)
Changes in Inv. Of FG & WIP
(2)
15
nmf
(24)
nmf
12
(32)
nmf
Employee Benefits Expense
21
19
10.7
15
37.0
40
30
(48.9)
Other Expenses
39
39
0.7
40
(3.0)
78
64
(36.8)
EBITDA
54
52
3.8
39
38.7
106
79
(50.7)
EBIDTA %
11.7
12.2
12.2
12.0
11.5
Depreciation
12
12
5.9
10
20.5
24
17
(38.4)
EBIT
42
40
3.2
29
45.3
82
62
(54.0)
Interest and Financial Charges
6
10
(42.5)
13
(55.3)
16
21
(35.8)
Other Income
10
10
4.2
15
(32.0)
20
23
(35.1)
PBT before Exceptional Items
46
40
15.3
30
50.8
86
65
(53.0)
Exceptional Items
0
0
0
0
0
PBT after Exceptional Items
46
40
15.3
30
50.8
86
65
(53.0)
Tax
16
14
12.8
9
67.7
29
21
(55.8)
% of PBT
33.8
34.5
30.4
34.1
32.3
PAT
30
26
16.6
21
43.4
57
44
(51.7)
PAT %
6.6
6.1
6.7
6.4
6.4
Dil. EPS (after extra-ord. Items)
5.93
5.79
2.4
5.33
11.3
11.72
11.04
(51.7)
Source: Company, Angel Research
Standalone Business Review
Strong execution seen during the quarter
PNC witnessed strong execution during 2QFY2016. The company reported a top-
line growth of 45.1% yoy to `463cr (ahead of our estimate of `378cr). 69.8% of
the 2QFY2016 revenues were booked from external road EPC projects, inclusive of
Agra-Firozabad (35.2%), Sonauli-Gorakhpur (3.2%) and Barabanki-Jarwal (8.0%)
projects. EPC works from captive BOT projects (1) Bareilly-Almora (14.5%) and
(2) Rae-Bareli-Jaunpur (15.8%), also contributed to the quarter’s top-line numbers.
Exhibit 2: 2QFY2016 Revenue-Mix (in %)
Exhibit 3: Quarterly Revenue performance
500
450
400
350
Other Projects,
Agra-
23.3
Firozabad,
300
35.2
250
Bareily-
200
Almora, 14.5
150
100
Raibareli-
Sonauli-
Jaunpur, 15.8
Gorakhpur,
50
Barabanki-
3.2
0
Jarwal, 8.0
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16
2QFY16
Source: Company, Angel Research
Source: Company, Angel Research
November 9, 2015
2
PNC Infratech | 2QFY2016 Result Update
EBITDA margin declines during the quarter
On the operating front, PNC reported an EBITDA of `54cr, ahead of our estimate
of `47cr. Reported EBITDA margin of the company was at 11.7%, lower than the
year ago and sequential previous quarter’s EBITDA margin of 12.2%. Decline in
EBITDA margin on a yoy basis is on account of (1) 37.0% yoy increase in employee
expenses to `21cr, and (2) 41.3% increase in raw material expenses to `351cr.
The decline in yoy EBITDA margin is attributable to higher sub-contracting
expenses, as well.
Exhibit 4: EBITDA margin declines to 11.7%
Exhibit 5: PAT Margin flat at 6.1% for the quarter
80
17.5
20
35
7.1
7.2
18
7.0
70
30
16
6.6
6.8
13.2
60
12.2
12.3
12.2
14
25
6.6
11.7
6.3
50
6.4
12
20
6.0
5.9
6.2
40
10
6.0
15
8
6.0
30
6
10
5.8
20
5.6
4
5
10
5.4
2
0
5.2
0
0
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16
2QFY16
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16
2QFY16
EBITDA (` cr)
EBITDA Margins (%)
PAT (` cr)
PAT Margins (%)
Source: Company, Angel Research
Source: Company, Angel Research
PAT margin declines a bit on a yoy basis
PNC reported a PAT of `30cr, ahead of our expectations of `23cr. Reported PAT
margin of the company was at 6.6% during the quarter, marginally lower than
6.7% in the corresponding quarter a year ago and vs 6.1% in the sequential
previous quarter. PAT margin on a yoy basis was impacted due to (1) 20.5%
increase in depreciation expenses to `12cr (reflecting impact of new equipment
purchases), and (2) 55.3% decline in interest expenses to `6cr (on the back of
decline in yoy debt to `211cr).
November 9, 2015
3
PNC Infratech | 2QFY2016 Result Update
Order Inflows continue to grow…
In FY2015, PNC reported net order inflow of `1,618cr (55.5km stretch connecting
Agra-Firozabad Green Expressway project). In YTDFY2016, PNC has either won/is
L1 for projects worth `1,743cr.
2 projects are currently at L1 stage - (1) resurfacing/ strengthening of Runway at
Air Force Station, Kanpur (worth `167cr), and (2) Aligarh-Moradabad EPC project
(worth `645cr).
Exhibit 6: YTD Order Inflows stand at `1,743cr
Exhibit 7: Order Book gives strong revenue visibility
3,500
6,000
0.31x
0.3x
0.3x
0.31x
3,000
5,000
0.31x
2,500
4,000
0.31x
2,000
0.30x
3,000
1,500
0.3x
0.30x
2,000
0.30x
1,000
0.30x
1,000
500
0.30x
0
0
0.29x
FY2015
YTDFY2016
FY2016E
FY2017E
FY15
FY16E
FY17E
OI (` cr)
OB (` cr)
Execution Rate (x)
Source: Company, Angel Research
Source: Company, Angel Research
Management expects the company to benefit from an uptick in NHAI & MoRTH’s
award activity and has maintained its order inflow guidance of ~`2,500cr-3,000cr
for FY2016E. The guidance is backed by strong bid pipeline emerging from NHAI
& MoRTH side (projects to be awarded are from Uttar Pradesh., Punjab, Madhya
Pradesh, Chattisgarh).
PNC’s unexecuted order book (inc. L1 order wins) as of 2QFY2016 stands at
`3,578cr (order book to LTM ratio stands at 2.1x). The Roads & Highways vertical
continues to dominate the order book mix.
Exhibit 8: Top 5-projects as % of total Order Book
Exhibit 9: Details of Top-5 projects being executed
O/s Total Project
Project details
Value (` cr)
Agra-Firozabad
1,408
17%
Bhojpur-Buxar
477
Koilwar-Bhojpur
454
83%
Sonauli-Gorakhpur
408
Barabanki-Jarwal
218
Top 5-projects
2,965
Top 5 projects
Other Projects
Source: Company, Angel Research
Source: Company, Angel Research
November 9, 2015
4
PNC Infratech | 2QFY2016 Result Update
Update on BOT projects
PNC currently has 8 BOT/OMT assets which are at different stages of execution.
Of these, 1 is a BOT-Annuity project, 1 is an industrial estate maintenance project
(BOT-Annuity + Fee model), 1 is an OMT project, and the remaining 5 are BOT-
Toll projects. Notably, all 8 BOT projects are Uttar Pradesh (UP) or Central/North
India based. 5 of these BOT projects have been won on Viability Gap Funding
(VGF) basis, amidst competition. The Management highlighted that equity IRRs for
these BOT projects are in the range of 16-18%.
Currently 6 of the 7 BOT projects are operational and the remaining 1 (Rae Bareli-
Jaunpur BOT projects) is likely to be operational by December-2015 (ahead of its
scheduled CoD of June-2016). On such early completion, the company claims that
it would be eligible for single annuity (worth `64.3cr) as bonus amount.
Exhibit 10: BOT Projects Status (at 2QFY2016-end)
PNC
Length
PNC Equity
BOT projects
Proj. Type
Status
TPC
Stake (%)
(kms)
Invested to-date
Ghaziabad-Aligarh
Toll
35%
Operational
125
2,000
68
Kanpur-Kabrai
Toll
100%
Operational
123
458
68
Gwalior-Bhind
Toll
100%
Operational
108
340
78
Bareilly-Almora
Toll
100%
Operational
54
604
75
Jaora-Nayagaon
Toll
9%
Operational
128
907
24
Rae Bareli-Jaunpur
Annuity
100%
Under Const.
166
837
140
Narela Industrial Estate
Annuity + Fee
100%
Operational
NA
175
35
OMT projects
Kanpur-Ayodhya
Toll
100%
Operational
217
0
0
Source: Company, Angel Research
With `65cr (from the IPO proceeds) having been infused by PNC towards the
Raebareli-Jaunpur BOT project, it now does not have any more equity
commitments pending towards the BOT projects.
Kanpur-Kabrai BOT project witnessed ~11.4% yoy increase in its per-day toll
collections for the quarter at `59.09lakh/day.
Kanpur-Ayodhya OMT project during 2QFY2016 collected `54cr of gross toll
income, which in our estimate is an 8% yoy increase.
For Ghaziabad-Aligarh BOT project, the company reported a sequential decline in
toll income from ~`36lakh/day (`32.4cr for the quarter) to ~`40lakh/day (`36cr
for the quarter) in 2QFY2016. The Management expects tolling from this BOT to
catch-up in the next 3-6 months, (1) once the entire road stretch gets operational
(currently does only partial tolling; tolling could potentially increase by `17lakh/
day), and (2) on implementation of over-loading charges (tolling could potentially
increase by `7lakh/ day).
November 9, 2015
5
PNC Infratech | 2QFY2016 Result Update
Risks & Concerns
Delay in order wins could pose as a risk to our estimates.
Roads & Highways account for a substantial chunk of the order book.
Slowdown in orders from NHAI
/ State governments could affect the
company’s order inflow adversely.
PNC's order book comes majorly from North India. Any slowdown in orders
from this region may impact our order inflow assumption for the company.
November 9, 2015
6
PNC Infratech | 2QFY2016 Result Update
Outlook & Valuation
Considering strong execution trends exhibited by PNC, uptick in the NHAI and
MoRTH awarding momentum, when coupled with recent NHAI announcements,
we expect further uptick in the execution from here-on. Accordingly, we revise
upwards our revenue estimates for FY2016/FY2017E to
`1,873/2,288cr,
respectively (revenue CAGR of 21.1% over FY2015-17E). We maintain our EBITDA
margin assumption for FY2016 and FY2017 at 13.2% and 13.5%, respectively. In
addition to EBITDA growth, on fine-tuning our estimates, we expect PNC
(standalone entity) to report 28.5% PAT CAGR during FY2015-17E to `166cr.
Exhibit 11: Earnings Revision
FY2016E
FY2017E
Y/E March (` cr)
Old
New Change (%)
Old
New Change (%)
Net Sales
1,798
1,873
4.2
2,132
2,288
7.3
EBITDA
237
247
4.2
288
309
7.3
EBITDA Margins (%)
13.2
13.2
13.5
13.5
PAT
114
121
6.1
153
166
8.5
PAT Margins (%)
6.3
6.4
7.2
7.2
Source: Angel Research
We have valued PNC using the Sum-Of-The-Parts method. The company’s EPC
business (under standalone entity) has been valued using FY2017E P/E multiple,
whereas BOT projects are valued using the Book Value/ Free Cash flow to Equity
holders method.
Value of Core EPC business
Considering the growth prospects of the EPC segment (given the expected uptick in
Roads and Highways award activity environment), we have valued PNC’s core EPC
business (standalone entity) on P/E of 14.0x its revised FY2017E EPS of `32,
resulting in a value of `452 per share.
November 9, 2015
7
PNC Infratech | 2QFY2016 Result Update
Exhibit 12: Sum-of-the-Parts based Valuation Table
FY17E Std. PAT
Target
Target Value
Value/ share
% of
Particulars
Segment
Basis
(` cr)
Multiple
(` cr)
(`)
SoTP
PNC's EPC business
Construction
166
14.0
2,321
452
81 P/E of 14x
Total
2,321
452
81
Adj. Equity
Equity Invested/
Project
Invested/ Disc.
Value/ share
% of
Particulars
Proj. Type
Disc. FCFE
Basis
Stake
FCFE
(`)
SoTP
(` cr)
(` cr)
Road BOT projects
Ghaziabad-Aligarh
Toll
194
35%
68
13
2
BV/share- 1.0x
Kanpur-Kabrai
Toll
68
100%
81
16
3
BV/share- 1.2x
Gwalior-Bhind
Toll
78
100%
78
15
3
BV/share- 1.0x
Bareilly-Almora
Toll
75
100%
75
15
3
BV/share- 1.0x
Jaora-Nayagaon
Toll
287
9%
24
5
1
BV/share- 1.0x
Rae Bareli-Jaunpur
Annuity
140
100%
140
27
5
BV/share- 1.0x
Narela Industrial Estate
Annuity+Fee
35
100%
39
8
1
BV/share- 1.1x
Kanpur Ayodhya
OMT
37
100%
37
7
1
FCFE, discount rate at 14%
Total
913
541
105
19
Grand Total
2,862
558
100
Upside
7%
CMP
522
Source: Company, Angel Research
Value of BOT projects
BOT projects have been valued using Book Value/ Free Cash flow to Equity
holder’s method. Our value for all the 8 BOT projects comes to `105/share, which
is 19% of the overall SOTP value for the company.
On combining the value of EPC business BOT projects, we arrive at a combined
business value of `558/share, reflecting 7% upside in stock price from the current
levels. Given the upside, we maintain our ACCUMULATE rating on the stock.
November 9, 2015
8
PNC Infratech | 2QFY2016 Result Update
Investment arguments
Strong order inflows to lead to better execution: PNC, a north focused EPC
player, should gain from a sharp revival in NHAI and MoRTH award activity,
in-turn translating into strong order inflows over the next 12 months. We
expect PNC to report order inflows of
`2,800/3,000cr during
FY2016E/2017E, which should further lead to uptick in execution. Accordingly,
we expect PNC (on standalone basis) to report strong 21.1% top-line CAGR
during FY2015-17E.
28.5% PAT CAGR during FY2015-17E: Stronger execution, benefits of lower
raw material prices and absorption of fixed costs, should help PNC
(standalone entity) report 19.4% EBITDA CAGR during FY2015-17E. EBITDA
growth coupled with decline in interest expenses (from `46cr in FY2015 to
`25cr in FY2017E) should help the standalone entity report 28.5% PAT CAGR
during the same period.
BOT projects nearing completion: PNC has a portfolio of 8 BOT projects, of
which 7 are operational. 3 of the BOT projects (Ghazaibad-Aligarh, Bareilly
Almora and Kanpur-Kabrai) commenced tolling in FY2016. Also, 1 of the
remaining project would commence operations in FY2016E itself. With
commencement of 4 BOT projects in FY2016E, we can expect possible ease in
consolidated balance sheet stress from FY2017E onwards.
Comfortable consol. D/E ratio: PNC entered the BOT space in FY2012 and
OMT space in FY2014. As a result, the consolidated debt of the company
increased from 0.2x in FY2011 to 1.9x in FY2015 (consolidated debt at
`1,635cr). The Management commented that they do not intend to build the
BOT portfolio unless (1) BOT project gives an estimated 16-18% equity IRR, (2)
the project’s ticket size is within `500cr as the Management intends equity
funding for new BOTs to be done through internal accruals, and (3) the
project is based within North India/ UP. With 1 pending BOT project likely to
get operational in the next 3 months, and PNC’s focus to reduce additions to
BOT projects portfolio, we expect the consolidated D/E ratio levels of the
company to peak-out in FY2017E.
Company background
PNC Infratech Ltd (PNC), incorporated in 1999, is an Agra based infra player
mainly focused on Roads & Highways construction. PNC, in FY2012, diversified
into BOT-Toll & Annuity projects and in FY2014 into OMT projects. Currently, PNC
is executing 20 Engineering Procurement Construction (EPC) projects (1 through JV
route), 7 BOT projects (including 2 Annuity projects) and 1 OMT project.
November 9, 2015
9
PNC Infratech | 2QFY2016 Result Update
Profit and Loss Statement (Standalone)
Y/E March (` cr)
FY13
FY14
FY15
FY16E
FY17E
Net Sales
1,303
1,145
1,561
1,873
2,288
% Chg
2.3
(12.1)
36.3
20.0
22.2
Total Expenditure
1,148
1,005
1,344
1,626
1,979
Cost of Raw Materials Consumed
367
372
1,196
760
915
Change in Inventories of WIP
2
10
(60)
(37)
(34)
Employee benefits Expense
47
58
74
90
108
Other Expenses
732
566
135
813
991
EBITDA
156
140
217
247
309
% Chg
1.0
(10.0)
54.6
14.1
25.0
EBIDTA %
11.9
12.2
13.9
13.2
13.5
Depreciation
23
25
36
43
47
EBIT
133
115
180
205
261
% Chg
(1.7)
(13.3)
56.3
13.6
27.7
Interest and Financial Charges
23
23
46
34
25
Other Income
4
11
14
14
16
PBT
114
102
148
184
253
Tax
37
36
47
64
87
% of PBT
32.7
34.8
32.1
34.5
34.4
PAT before Exceptional item
76
67
100
121
166
Exceptional item
0
0
0
0
0
PAT
76
67
100
121
166
% Chg
(3.3)
(12.6)
50.2
20.2
37.5
PAT %
5.9
5.8
6.4
6.4
7.2
Diluted EPS
19
17
25
24
32
% Chg
(3.3)
(12.6)
50.2
(6.8)
37.5
November 9, 2015
10
PNC Infratech | 2QFY2016 Result Update
Balance Sheet (Standalone)
Y/E March (` cr)
FY13
FY14
FY15
FY16E
FY17E
Sources of Funds
Equity Capital
40
40
40
51
51
Reserves Total
527
590
679
1,219
1,375
Networth
566
630
718
1,270
1,426
Total Debt
234
248
324
215
235
Other Long-term Liabilities
99
178
250
234
234
Deferred Tax Liability
0
3
0
0
0
Total Liabilities
900
1,058
1,293
1,719
1,895
Application of Funds
Gross Block
225
287
387
431
494
Accumulated Depreciation
111
134
171
213
261
Net Block
114
153
217
218
234
Capital WIP
12
2
1
1
1
Investments
271
351
424
699
699
Current Assets
Inventories
105
105
223
260
305
Sundry Debtors
398
344
367
468
572
Cash and Bank Balance
38
100
21
25
25
Loans, Advances & Deposits
75
127
214
255
308
Other Current Asset
2
1
1
2
2
Current Liabilities
218
223
285
343
407
Net Current Assets
401
455
541
666
805
Other Assets
102
98
111
135
158
Total Assets
900
1,058
1,293
1,719
1,895
November 9, 2015
11
PNC Infratech | 2QFY2016 Result Update
Cash Flow Statement (Standalone)
Y/E March (` cr)
FY13
FY14
FY15
FY16E
FY17E
Profit before tax
114
103
148
184
253
Dep. & Other Non-cash Charges
22
28
28
32
38
Change in Working Capital
59
74
(105)
(162)
(161)
Interest & Financial Charges
23
23
46
34
25
Direct taxes paid
(39)
(33)
(50)
(63)
(86)
Cash Flow from Operations
179
195
67
26
68
(Inc)/ Dec in Fixed Assets
(33)
(54)
(100)
(44)
(63)
(Inc)/ Dec in Investments
(104)
(80)
(73)
(275)
0
Cash Flow from Investing
(137)
(133)
(172)
(319)
(63)
Issue/ (Buy Back) of Equity
0
0
0
435
0
Inc./ (Dec.) in Loans
(17)
21
76
(109)
20
Dividend Paid (Incl. Tax)
(3)
(3)
(7)
(7)
(10)
Net Interest Expenses
(21)
(17)
(42)
(22)
(16)
Cash Flow from Financing
(42)
0
27
297
(6)
Inc./(Dec.) in Cash
0
62
(79)
4
(0)
Opening Cash balances
38
38
100
21
25
Closing Cash balances
38
100
21
25
25
November 9, 2015
12
PNC Infratech | 2QFY2016 Result Update
Key Ratios (Standalone)
Y/E March
FY13
FY14
FY15P
FY16E
FY17E
Valuation Ratio (x)
P/E (on FDEPS)
27.2
31.1
20.7
22.2
16.2
P/CEPS
20.9
22.7
15.2
16.4
12.6
Dividend yield (%)
17.5
17.5
8.7
8.7
6.3
EV/Sales
1.7
1.9
1.5
1.5
1.3
EV/EBITDA
14.6
15.9
11.0
11.6
9.4
EV / Total Assets
2.0
1.7
1.5
1.4
1.3
Per Share Data (`)
EPS (fully diluted)
19.2
16.8
25.2
23.5
32.3
Cash EPS
24.9
23.0
34.3
31.8
41.6
DPS
0.8
0.8
1.5
1.2
1.6
Book Value
142
158
180
247
278
Returns (%)
RoCE (Pre-tax)
17.7
15.0
20.2
17.3
17.6
Angel RoIC (Pre-tax)
18.8
16.5
21.6
17.6
17.9
RoE
14.4
11.2
14.9
12.1
12.3
Turnover ratios (x)
Asset Turnover (Gross Block) (X)
6.1
4.5
4.6
4.6
4.9
Inventory / Sales (days)
35
33
38
47
45
Receivables (days)
114
118
83
81
83
Payables (days)
61
80
69
71
69
WC (days)
88
72
52
58
59
Leverage Ratios (x)
D/E ratio (x)
0.4
0.4
0.5
0.2
0.2
Interest Coverage Ratio (x)
5.8
5.4
4.2
6.3
11.2
November 9, 2015
13
PNC Infratech | 2QFY2016 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. It is also registered as a Depository Participant with
CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is
a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial
ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation /
managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst
has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity
of the company covered by Analyst.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement
PNC Infratech
1. Analyst ownership of the stock
No
2. Angel and its Group companies ownership of the stock
No
3. Angel and its Group companies' Directors ownership of the stock
No
4. Broking relationship with company covered
No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15%)
November 9, 2015
14