4QFY2016 Result Update | Infrastructure

June 8, 2015

PNC Infratech

ACCUMULATE

CMP

`570

Performance Highlights

Target Price

`647

Quarterly highlights - Standalone

Investment Period

12 Months

Y/E March (` cr)

4QFY16 3QFY16

% chg (qoq)

4QFY15

% chg (yoy)

Net sales

585

518

12.9

459

27.4

Stock Info

EBITDA

13.6

30.6

Sector

Infrastructure

Market Cap (` cr)

2,924

Reported PAT

115

253.7

250.0

Source: Company, Angel Research

Net debt (` cr)

(91)

Beta

0.9

For 4QFY2016, PNC Infratech (PNC) reported a top-line growth of 27.4% while

52 Week High / Low

612/361

the bottom-line grew by a substantial 250% yoy. The top-line growth was driven

Avg. Daily Volume

33,225

by strong execution across Agra-Firozabad and other road projects. Stronger

Face Value (`)

execution and yoy decline in employee expenses led to a 31bp yoy expansion in

the EBITDA margin to 12.5%. A 30.6% yoy EBITDA growth coupled with tax

BSE Sensex

26,777

reversals and MAT credit led the PAT to grow by 250% yoy. The PAT margin, at

Nifty

8,201

19.6%, rose significantly on a yoy basis.

Reuters Code

PNCI.BO

Bloomberg Code

PNCL@IN

PNC’s unexecuted order book as of 4QFY2016 stands at `5,797cr (order book

to LTM sales ratio stands at 2.7x).

All the BOT projects are now operational as of FY2016-end. The Management

Shareholding Pattern (%)

has indicated that it does not intend to add any new BOT projects in FY2017-18

Promoters

56.1

unless a lucrative project in north India comes up within the `500cr ticket size. As

MF / Banks / Indian Fls

13.9

a result, we are of the view that PNC’s consolidated D/E ratio would peak out in

FII / NRIs / OCBs

6.5

FY2017E.

Indian Public / Others

23.6

Outlook and valuation: Considering the strong uptick in roads and highways EPC

award activity especially in north India, where PNC has more comfort, and given

Abs. (%)

3m 1yr 3yr

its past track record and recent wins, we expect the standalone entity to report

Sensex

8.6

1.0

37.0

20.1% top-line CAGR over FY2015-2017E. With normal tax rate applicable from

PNC Infratech

16.2

50.2

FY2018, the bottom-line growth would be of -5.3% CAGR during the same

*NA as PNC listed on May 26, 2015

period. Accordingly, the RoEs would decline from 23.3% in FY2016 to 13.2% in

FY2018E. We are also now comforted that the consolidated Balance Sheet would

3-Year Daily Price Chart

peak from FY2017E onwards. Using the SoTP valuation methodology we arrive

600

at a FY2018E based price target of `647. Given the 13% upside in the stock form

the current levels, we maintain our Accumulate rating on the stock.

550

500

Key financials (Standalone)

Y/E March (` cr)

FY14

FY15

FY16

FY17E

FY18E

450

Net Sales

1,145

1,561

2,014

2,350

2,904

400

% chg

(12.1)

36.3

29.0

16.7

23.6

350

Net Profit

100

243

245

218

% chg

(12.6)

50.2

141.9

1.1

(11.3)

EBITDA (%)

12.2

13.9

13.2

13.4

13.7

EPS (`)

42.4

Source: Company, Angel Research

P/E (x)

34.0

22.6

12.0

11.9

13.4

P/BV (x)

3.6

3.2

2.1

1.9

0.0

RoE (%)

11.2

14.9

23.3

16.8

13.2

RoCE (%)

15.0

20.2

19.4

17.1

18.3

Yellapu Santosh

EV/Sales (x)

2.1

1.6

1.4

1.3

1.1

022 - 3935 7800 Ext: 6811

EV/EBITDA (x)

17.3

11.9

10.7

10.1

8.0

[email protected]

Source: Company, Angel Research; Note: CMP as of June 6, 2015

Please refer to important disclosures at the end of this report

PNC Infratech | 4QFY2016 Result Update

Exhibit 1: Quarterly Standalone Performance

Particulars (` cr)

4QFY16

3QFY16

% chg (qoq)

4QFY15

% chg (yoy)

FY16

FY15

% chg (yoy)

Net Sales

585

518

12.9

459

27.4

1,992

1,530

30.2

Total Expenditure

512

454

12.8

403

27.0

1,748

1,344

30.0

Cost of materials consumed

394

388

1.5

377

4.4

1,434

1,196

19.9

Changes in Inv. Of FG & WIP

(2)

nmf

(35)

nmf

(60)

nmf

Employee Benefits Expense

(2.5)

(9.6)

13.4

Other Expenses

60.0

94.2

196

135

45.2

EBITDA

13.6

30.6

244

186

31.3

EBIDTA %

12.5

12.4

12.2

12.1

Depreciation

3.5

35.4

44.3

EBIT

16.4

29.5

191

149

28.1

Interest and Fin. Charges

9.5

(19.1)

(28.1)

Other Income

114.4

19.3

(5.5)

PBT before Exceptional Items

31.4

38.0

200

148

35.6

Exceptional Items

PBT after Exceptional Items

31.4

38.0

200

148

35.6

Tax

(50)

(42)

% of PBT

(76.4)

34.4

30.4

(21.1)

32.1

PAT

115

253.7

250.0

243

100

141.9

PAT %

19.6

6.3

7.1

12.2

6.6

Dil. EPS (after extra-ord. Items)

29.96

6.32

374.1

8.24

263.6

48.77

25.21

93.5

Source: Company, Angel Research

Standalone Business Review

Strong execution seen during the quarter

PNC witnessed strong execution during 4QFY2016. The company reported a

strong 27.4% yoy top-line growth to `585cr. Agra-Firozabad (`347cr), Sonauli-

Gorakhpur and Barabanki-Jarwal projects majorly contributed to the 4QFY2016

revenues.

Exhibit 2: 4QFY2016 Revenue-Mix

Exhibit 3: Quarterly Revenue performance

700

Other

600

Projects,

11.1%

500

Barabanki-

Jarwal, 11.6%

400

Agra-

300

Sonauli-

Firozabad,

Gorakhpur,

59.3%

200

17.9%

100

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

Source: Company, Angel Research

June 8, 2016

PNC Infratech | 4QFY2016 Result Update

EBITDA margin expands to 12.5%

On the operating front, PNC reported an EBITDA of `73cr, reflecting an EBITDA

margin of 12.5% for the quarter. The reported EBITDA margin expanded 31bp yoy

to 12.5%. Strong execution coupled with 9.6% decline in employee expenses led to

a yoy EBITDA margin expansion.

Exhibit 4: EBITDA margin expands to 12.5%

Exhibit 5: PAT Margin expands to 19.6%

140

25.0

17.5

12.5

120

19.6

12.4

13.2

20.0

11.7

100

12.2

15.0

7.1

6.0

6.6

6.3

10.0

5.9

5.0

0.0

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

EBITDA (` cr)

EBITDA Margins (%)

PAT (` cr)

PAT Margins (%)

Source: Company, Angel Research

PAT margin also expands yoy to 19.6%

PNC reported a strong PAT at `115cr for the quarter. The reported PAT margin

came in at 19.6%, ahead of 7.1% in the corresponding quarter a year ago and

6.3% in the sequential previous quarter. The PAT on a yoy basis benefitted from (1)

write back of excess tax provisions (`15.2cr), recognition of MAT credit (`23.7cr),

(2) 19.3% yoy increase in other income (to `15cr) and (3) 19.1% decline in interest

expenses to `9cr (on the back of decline in yoy debt to `6cr).

Order inflows continue to grow

In FY2016, PNC reported a 146% yoy increase in net order inflows to `3,972cr.

These include 6 highway projects and 1 airport runway project (has received letter

of award for all the 7 projects). Further, YTDFY2017, PNC has either won/is L1 for

projects worth ~`260cr.

2 projects currently at L1 stage include- (1) extension and resurfacing of runway at

Air Force Station, Bakshi Ka Talab, near Lucknow worth `140.6cr from Military

Engineering Services, India, and (2) upgradation of Nanau-Dodon section in the

district of Aligarh, Uttar Pradesh worth `119.9cr by UP PWD.

June 8, 2016

PNC Infratech | 4QFY2016 Result Update

Exhibit 6: YTD Order Inflows stand at ~`260cr

Exhibit 7: Order Book gives strong revenue visibility

4,500

7,000

0.33x

0.3x

4,000

6,000

0.32x

0.3x

3,500

5,000

0.31x

3,000

0.3x

2,500

4,000

0.30x

2,000

3,000

0.29x

0.3x

1,500

2,000

0.28x

1,000

0.27x

500

0.26x

FY2015

FY2016

YTDFY2017

FY2017E

FY2018E

FY15

FY16

FY17E

FY18E

OI (` cr)

OB (` cr)

Execution Rate (x)

Source: Company, Angel Research

The Management expects the company to benefit from an uptick in NHAI &

MoRTH’s award activity and has given an order inflow guidance of ~`5,000cr for

FY2017E. The guidance is backed by a strong bid pipeline emerging from NHAI &

MoRTH side (especially from Uttar Pradesh, Haryana, Madhya Pradesh).

PNC’s unexecuted order book (including L1 order wins) as of 4QFY2016 stands at

`5,797cr (order book to LTM ratio stands at 2.7x). 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)

Nagina-Kashipur

1,156

28%

Varanasi-Gorakhpur

869

83%

Agra-Firozabad

860

Aligarh-Moradabad

645

Bhojpur-Buxar

477

Top 5-projects

4,007

Top 5 projects

Other Projects

Source: Company, Angel Research

June 8, 2016

PNC Infratech | 4QFY2016 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.

Currently all 7 BOT projects are operational (Rae Bareli-Jaunpur BOT project

commenced operations 98 days before the scheduled CoD of June-2016). On Jan

2, 2016, PNC completed the sale of its 8.5% stake in Jaora-Nayagaon Toll Road

Company for `34.19cr for a profit of `9.7cr.

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

Kanpur-Kabrai

Toll

100%

Operational

123

458

Gwalior-Bhind

Toll

100%

Operational

108

340

Bareilly-Almora

Toll

100%

Operational

604

Rae Bareli-Jaunpur

Annuity

100%

Under Const.

166

837

140

Narela Industrial Estate

Annuity + Fee

100%

Operational

175

OMT projects

Kanpur-Ayodhya

Toll

100%

Operational

217

Source: Company, Angel Research

With all 7 BOT projects operational PNC does not have any equity commitments

pending towards the BOT projects.

Kanpur-Ayodhya OMT project during 4QFY2016 collected `64cr of gross toll

income, which in our estimate is an 11% yoy increase.

For Ghaziabad-Aligarh BOT project, PNC reported toll income of ~`40lakh/day.

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);

and (2) on implementation of over-loading charges.

Risks & Concerns

 Delay in order wins could pose as a risk to our estimates.

 Roads & Highways account for substantial chunk of the order book. Slowdown

in orders from NHAI / State governments could affect 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.

June 8, 2016

PNC Infratech | 4QFY2016 Result Update

Outlook & Valuation

Considering strong execution trends exhibited by PNC, uptick in NHAI and MoRTH

awarding momentum, when coupled with recent NHAI announcements, we expect

further uptick in execution from here-on. Accordingly, we revise our FY2017E

revenue estimate to

`2,350cr and roll-out FY2018E estimate at

`2,904cr,

respectively (revenue CAGR of 20.1% over FY2016-18E). Given that recent order

wins have been at disciplined bidding, we expect EBITDA margins to expand from

13.2% in FY2016 to 13.7% in FY2018E. With Management clarifying that they

would avail MAT credit in FY2017E, we are sharply revising upwards our FY2017E

PAT estimate to `245cr. On the whole, we expect PNC to report -5.3% PAT CAGR

during FY2016-18E to `218cr.

Exhibit 11: Earnings Revision

FY2017E

FY2018E

Y/E March (` cr)

Old

New

Chg (%)

Old

Net Sales

2,288

2,350

2.7

2,904

EBITDA

309

315

1.9

396

EBITDA Margins (%)

13.5

13.4

13.6

PAT

166

245

47.6

218

PAT Margins (%)

7.2

6.4

7.5

Source: Angel Research

Value of Core EPC business

With applicability of normal tax rates from FY2018 onwards, we do not see a

scenario where the entire growth prospects of EPC segment (given expected uptick

in Roads and Highways award activity environment, current OB/LTM sales ratio of

2.7x), trickling down to the PAT level. We now expect PNC’s EPC business to report

20.1% top-line and -5.3% bottom-line CAGR during FY2016-18E, respectively. On

the same lines we expect RoEs of the standalone business to decline from 23.3% in

FY2016 to 13.2% in FY2018E. Accordingly, we have valued PNC’s core EPC

business (standalone entity) on P/E of 13.0x its FY2018E EPS of `42.4, resulting in

a value of `551/share.

June 8, 2016

PNC Infratech | 4QFY2016 Result Update

Exhibit 12: Sum-of-the-Parts based Valuation Table

Value/

FY18E Std.

Target

Target Value

% of

Particulars

Segment

Basis

PAT (` cr)

Multiple

(` cr)

SoTP

(`)

PNC's EPC business

Construction

218

13.0

2,829

551

85 P/E of 13x

Total

2,829

551

Equity

Adj. Equity

Value/

Project

% of

Particulars

Proj. Type

Invested/ Disc.

Disc. FCFE

Basis

Stake

SoTP

FCFE (` cr)

(` cr)

(`)

Road BOT projects

Ghaziabad-Aligarh

Toll

194

35%

BV/share- 1.0x

Kanpur-Kabrai

Toll

100%

BV/share- 1.2x

Gwalior-Bhind

Toll

100%

BV/share- 1.0x

Bareilly-Almora

Toll

100%

BV/share- 1.0x

Rae Bareli-Jaunpur

Annuity

140

100%

140

BV/share- 1.0x

Narela Industrial Estate

Annuity+Fee

100%

BV/share- 1.1x

Kanpur Ayodhya

OMT

100%

FCFE, discount rate at 14%

Total

901

488

Grand Total

3,317

647

100

Upside

13%

CMP

570

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 `85/share, which

is 15% 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 `647/share, reflecting 13% upside in stock price from the current

levels. Given the upside, we maintain our ACCUMULATE rating on the stock.

June 8, 2016

PNC Infratech | 4QFY2016 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

`3,000/3,200cr during

FY2017E/2018E, which should further lead to uptick in execution. Accordingly,

we expect PNC (on standalone basis) to report a strong 20.1% top-line CAGR

during FY2016-18E.



-5.3% PAT CAGR during FY2016-18E: Stronger execution, benefits of lower

raw material prices and absorption of fixed costs, should help PNC

(standalone entity) report 22.1% EBITDA CAGR during FY2016-18E. Entire

benefits of EBITDA growth would not trickle down to the PAT level, as the

normal tax rate would be applicable from FY2018 onwards. Accordingly, we

now expect PNC to report -5.3% PAT CAGR during the same period.

 All BOT projects are operational: PNC has a portfolio of 8 BOT projects, with

all of them being operational. With recent commencement of all BOT projects

in FY2016E, we can expect gradual ease in the 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 all pending BOT project getting

operational, and PNC’s focus to reduce additions to BOT projects portfolio, we

expect 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.

June 8, 2016

PNC Infratech | 4QFY2016 Result Update

Profit and Loss Statement (Standalone)

Y/E March (` cr)

FY14

FY15

FY16

FY17E

FY18E

Net Sales

1,145

1,561

2,014

2,350

2,904

% Chg

(12.1)

36.3

29.0

16.7

23.6

Total Expenditure

1,005

1,344

1,748

2,035

2,507

Cost of Raw Materials Consumed

372

1,196

1,434

1,741

2,147

Change in Inventories of WIP

(60)

(35)

(32)

Employee benefits Expense

101

119

Other Expenses

566

135

196

228

273

EBITDA

140

217

266

315

396

% Chg

(10.0)

54.6

22.8

18.4

25.9

EBIDTA %

12.2

13.9

13.2

13.4

13.7

Depreciation

EBIT

115

180

213

259

336

% Chg

(13.3)

56.3

18.4

21.1

30.0

Interest and Financial Charges

Other Income

PBT

102

148

200

245

311

Tax

(42)

% of PBT

34.8

32.1

(21.1)

0.0

30.0

PAT before Exceptional item

100

243

245

218

Exceptional item

PAT

FY14

FY15

FY16

FY17E

FY18E

% Chg

(12.6)

50.2

141.9

1.1

(11.3)

PAT %

5.8

6.4

12.1

10.4

7.5

Diluted EPS

% Chg

(12.6)

50.2

87.7

1.1

(11.3)

June 8, 2016

PNC Infratech | 4QFY2016 Result Update

Balance Sheet (Standalone)

Y/E March (` cr)

FY14

FY15

FY16

FY17E

FY18E

Sources of Funds

Equity Capital

Reserves Total

590

679

1,311

1,509

1,676

Networth

630

718

1,362

1,560

1,727

Total Debt

248

324

305

297

Other Long-term Liabilities

178

250

160

233

238

Deferred Tax Liability

(3)

Total Liabilities

1,058

1,293

1,525

2,095

2,259

Application of Funds

Gross Block

287

387

428

491

550

Accumulated Depreciation

134

171

223

279

340

Net Block

153

217

205

212

211

Capital WIP

Investments

351

424

464

849

949

Current Assets

Inventories

105

223

236

281

331

Sundry Debtors

344

367

376

555

645

Cash and Bank Balance

100

Loans, Advances & Deposits

127

214

258

294

331

Other Current Asset

Current Liabilities

223

285

362

418

524

Net Current Assets

455

541

606

778

824

Other Assets

111

240

256

275

Total Assets

1,058

1,293

1,525

2,095

2,259

June 8, 2016

PNC Infratech | 4QFY2016 Result Update

Cash Flow Statement (Standalone)

Y/E March (` cr)

FY14

FY15

FY16

FY17E

FY18E

Profit before tax

103

148

200

245

311

Dep. & Other Non-cash Charges

Change in Working Capital

(105)

(209)

(147)

(84)

Interest & Financial Charges

Direct taxes paid

(33)

(50)

(93)

Cash Flow from Operations

195

107

177

230

(Inc)/ Dec in Fixed Assets

(54)

(100)

(49)

(55)

(59)

(Inc)/ Dec in Investments

(80)

(73)

(41)

(384)

(100)

Cash Flow from Investing

(133)

(172)

(90)

(439)

(159)

Issue/ (Buy Back) of Equity

435

Inc./ (Dec.) in Loans

(318)

299

(8)

Dividend Paid (Incl. Tax)

(3)

(7)

(37)

(47)

(51)

Net Interest Expenses

(17)

(42)

(21)

(23)

(37)

Cash Flow from Financing

229

(96)

Inc./(Dec.) in Cash

(79)

(32)

(25)

Opening Cash balances

100

Closing Cash balances

100

June 8, 2016

PNC Infratech | 4QFY2016 Result Update

Key Ratios (Standalone)

Y/E March

FY14

FY15

FY16

FY17E

FY18E

Valuation Ratio (x)

P/E (on FDEPS)

34.0

22.6

12.0

11.9

13.4

P/CEPS

24.8

16.6

9.9

9.7

10.5

Dividend yield (%)

19.1

9.5

1.8

1.4

1.3

EV/Sales

2.1

1.6

1.4

1.3

1.1

EV/EBITDA

17.3

11.9

10.7

10.1

8.0

EV / Total Assets

1.9

1.6

1.5

1.3

1.1

Per Share Data (`)

EPS (fully diluted)

16.8

25.2

47.3

47.8

42.4

Cash EPS

23.0

34.3

57.5

58.8

54.2

DPS

0.8

1.5

6.1

7.9

8.5

Book Value

158

180

266

304

337

Returns (%)

RoCE (Pre-tax)

15.0

20.2

19.4

17.1

18.3

Angel RoIC (Pre-tax)

16.5

21.6

20.5

18.1

18.8

RoE

11.2

14.9

23.3

16.8

13.2

Turnover ratios (x)

Asset Turnover (Gross Block) (X)

4.5

4.6

4.9

5.1

5.6

Inventory / Sales (days)

Receivables (days)

118

Payables (days)

WC (days)

Leverage Ratios (x)

D/E ratio (x)

0.4

0.5

0.0

0.2

Interest Coverage Ratio (x)

5.4

4.2

7.0

8.9

7.9

June 8, 2016

PNC Infratech | 4QFY2016 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

2. Angel and its Group companies ownership of the stock

3. Angel and its Group companies' Directors ownership of the stock

4. Broking relationship with company covered

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%)

June 8, 2016