PNC Infratech shares jump 8%; Nuvama sees limited upside, retains 'HOLD'

Shares of PNC Infratech Ltd surged 8.47 per cent in Thursday's trade to hit a high of Rs 309.25. The company reported a weak set of numbers for the quarter ended March 2025 (Q4 FY25), with revenue and profitability taking a hit amid a soft operating environment.

According to Nuvama, the company's Q4 FY25 revenue fell 31 per cent year-on-year (YoY) to Rs 1,410 crore, while EBITDA margins contracted by nearly 70 basis points (bps) to 12.4 per cent. Adjusted profit after tax (PAT) declined 34 per cent YoY, reflecting the challenging operating conditions during the quarter.

Despite the subdued performance, PNC's order book remains robust. Including L1 (lowest bidder) positions, the domestic brokerage said the company's total order book stood at around Rs 17,800 crore at the end of FY25, translating into a healthy book-to-bill ratio of 3.5 times.

Nuvama noted that PNC has also made progress on its asset monetisation strategy. It has completed the sale of ten Hybrid Annuity Model (HAM) road projects for around Rs 1,830 crore. The sale of two additional projects, worth approximately Rs 630 crore, is expected to be completed in the first half of FY26.

The brokerage has revised its earnings estimates for FY26 and FY27 upward by 14 per cent and 12 per cent, respectively. It also raised the target price to Rs 286 from Rs 281, which is above the stock's current trading range.

"While PNC's operational trends remain weak, the improving financial position and better non-operational income support our slightly more optimistic outlook. We revise the P/E multiple from 7x to 8x and maintain our 'HOLD' rating," Nuvama stated in its latest note.

As of March 2025, promoters held a 56.07 per cent stake in the company.