PNC Infratech shares jump 11% as Nuvama raises target price
PNC Infratech shares surged 11% after Nuvama raised its target price to ₹286 from ₹281, retaining a 'HOLD' rating. As of 10:49 AM, the shares were trading 10.66% higher at Rs 315.60.
The company reported a 31% year-on-year (YoY) decline in Q4FY25 revenue at ₹14.1 billion, with EBITDA margins dropping 70 basis points to 12.4%. Adjusted PAT also fell 34% YoY. Despite weak operating performance, the order book remains healthy at around ₹178 billion, supported by a book-to-bill ratio of 3.5x. PNC won ₹67 billion worth of orders in FY25 and aims for ₹150 billion in new orders in FY26, targeting 20% revenue growth and 13% EBITDA margins.
A key positive factor is the ongoing asset monetisation strategy. PNC has completed the sale of ten HAM projects for about ₹18.3 billion, receiving ₹16.7 billion so far, with the balance pending contractual clearances. This sale will result in a pre-tax capital gain of ₹4.6 billion and post-tax gains of ₹4 billion. The company plans to sell two more projects in H1FY26 valued at ₹6.3 billion. These divestments are improving PNC's balance sheet and increasing other income, prompting upward revisions in FY26 and FY27 EPS estimates by 14% and 12%, respectively.
While the operating challenges persist, improving financial health and asset sales support a stable outlook for PNC Infratech. Investors should watch for order inflows and execution progress in the coming quarters.
Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at BusinessUpturn.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
an hour ago
- Business Upturn
Nuvama cuts target price for Mahanagar Gas (MGL) after analyst meet; Here's why
By Markets Desk Published on June 8, 2025, 20:43 IST Nuvama Institutional Equities has cut its target price on Mahanagar Gas Ltd (MGL) to ₹1,224 (from ₹1,305 earlier), while retaining its Reduce rating, citing concerns over deterioration in sourcing mix, potential margin pressure, and policy uncertainties in the City Gas Distribution (CGD) sector. Following its recent analyst interaction with MGL management, Nuvama said that while healthy volume growth momentum is likely to continue in the near term, structural headwinds remain. Volume growth to remain strong MGL's management expects double-digit volume growth to sustain, driven by several initiatives: Ongoing expansion of gas infrastructure — targeting addition of 180 km of steel pipelines and 250 new CNG stations by 2030 Marketing incentives for CNG — where MGL is partly covering the capital cost of vehicle conversion to CNG Offering a 10 percent discount to fuel oil prices for new PNG industrial customers for three years CNG price competitiveness — with CNG currently 47 percent cheaper than petrol and 12 percent cheaper than diesel, leaving headroom to cut prices if needed Gradual pickup in LNG fuelling for long-haul trucks, as capital costs decline over time. In addition, MGL sees further potential upside from: The merger of fast-growing UEPL Greater utilisation of exclusive CNG fuelling infrastructure for BEST buses Possible regulatory tailwinds if ICE vehicle phase-out recommendations in Mumbai Metropolitan Region are implemented Development boost from the ramp-up of Navi Mumbai airport. Rising sourcing costs to weigh on margins However, Nuvama cautions that MGL's gas sourcing mix is deteriorating faster than expected: The share of Administered Pricing Mechanism (APM) gas is declining, as more gas gets reclassified under New Well Gas (NWG), which is priced at a 20 percent premium. The shift, previously occurring at 7–8 percent annually, is now expected to accelerate to 10–12 percent per year. As a result, input gas costs will rise, putting pressure on margins. Industry-wide, Nuvama expects greater consolidation as lower profitability forces smaller or non-core players to divest CGD assets. MGL, with its net cash balance sheet, is open to inorganic growth opportunities if valuations are attractive. Valuation de-rating risk due to policy overhang Nuvama further notes that policy uncertainty and ad-hoc government interventions could lead to valuation de-rating across the CGD sector, similar to the trend seen in Oil Marketing Companies (OMCs), which trade at a significant discount. As a result of these headwinds, Nuvama has cut its FY26–27 EBITDA estimates for MGL by 2 percent and lowered its target price to ₹1,224. 'We retain our Reduce rating, as the sector faces margin headwinds, input cost pressures, and policy-related uncertainties,' the brokerage said. Disclaimer: The views and target prices mentioned in this article are as stated by Nuvama Institutional Equities. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions. Markets Desk at
Business Upturn
11 hours ago
- Business Upturn
NHPC declares COD for 3rd phase of Karnisar Solar Power Project in Bikaner
NHPC Limited has announced the commencement of commercial operations for the third phase of its 300 MW Karnisar Solar Power Project in Bikaner, Rajasthan. Following the successful completion of the trial run on June 5, 2025, the company declared the Commercial Operation Date (COD) for the third phase—adding 53.57 MW of capacity—effective June 7, 2025. With this milestone, the total commercially operational capacity of the Karnisar Solar Power Project now stands at 160.71 MW out of the planned 300 MW. This phased commissioning highlights NHPC's continued commitment to expanding its renewable energy portfolio and supporting India's clean energy transition. The project is a part of NHPC's broader strategy to diversify its energy mix beyond hydropower and contribute significantly to the nation's solar capacity. It aligns with India's ambitious renewable energy goals and showcases NHPC's growing presence in the solar sector. NHPC Q4 Results NHPC has reported a strong 52% year-on-year (YoY) jump in its consolidated net profit to ₹919.63 crore for the fourth quarter ended March 2025, compared to ₹605 crore in the same quarter last year. According to the company's regulatory filing, the impressive performance was primarily driven by a rise in total income, which grew to ₹2,672.11 crore in Q4 FY25 from ₹2,320.18 crore in Q4 FY24. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Business Upturn
a day ago
- Business Upturn
RailTel secures Rs 243 crore order from Bihar Education Project Council
By Aditya Bhagchandani Published on June 7, 2025, 22:30 IST RailTel Corporation of India Ltd has bagged a major domestic order worth Rs 243.11 crore from the Bihar Education Project Council (BEPC). The work order was received late on June 6, 2025, and was disclosed to stock exchanges on June 7. According to the official filing, RailTel will supply student kits for students from Class 1 to Class 12 enrolled in government schools across Bihar. The order is scheduled to be executed by August 14, 2025. The contract involves only supply-related deliverables and does not fall under the related-party transaction category. RailTel also confirmed that the promoter or promoter group has no direct or indirect interest in this deal. The move strengthens RailTel's position in the education infrastructure and services sector, particularly in state-led initiatives. The project is a significant step forward in enhancing educational tools and accessibility for school-going children in Bihar. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
