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PNC Infra share gains 7% post Q4 earnings

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Share of PNC Infratech rose 7 per cent to hit an intraday high of Rs 264.25 after the company announced its earnings for the quarter ended March 2021.

The company reported a consolidated net profit of Rs 150.36 crore for the quarter ended March 2021. Profit in the year-ago period stood at Rs 90.39 crore.
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Revenue from operations grew 38.43 per cent to Rs 1864.27 crore against Rs 1346.70 in the corresponding quarter of the previous year.

For FY21, the company posted a net profit of Rs 496.90 crore against Rs 549.88 crore in the previous year. Revenue from operations rose 3 per cent to Rs 5787.57 crore against Rs 5602.57 crore during the previous year.

The stock ended 5.69 per cent higher at Rs 259.90 against the previous close of Rs 245.90 on BSE. Market cap of the firm rose to Rs 6,667.45 crore.

The share has delivered 83 per cent returns in the last 12 months and risen 47 per cent since the beginning of this year. The share of the construction and engineering company stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.

In April 2021, the company, along with its wholly-owned subsidiary, PNC lnfra Holdings Limited and other partners/promoters entered into a ‘Share Purchase Agreement’ and other related transaction documents inter alia for sale its entire stake of 35% (which includes 19.88% stake held by PNC Infra Holdings Ltd., a Wholly Owned Subsidiary of Company) in Ghaziabad Aligarh Expressway Private Limited, an “Associate” of the Company to Cube Highways and Infrastructure Pte Ltd.

The consummation of the proposed transaction is subject to receipt of applicable regulatory and other approvals and complying with the conditions precedent, more specifically laid down in the Share Purchase Agreement.

The company informed that the proposed disinvestment is expected to augment financial resources for funding present and future projects.

HDFC Securities noted that execution has not been impacted much in 1QFY22 as labor availability remained intact despite the second wave of the pandemic. Margins are also expected to remain healthy as a large part of the order book (OB) has a cost escalation clause.

The brokerage firm has a ‘Buy’ call on the stock with a target price of Rs 342 per share.

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