NSEI:PNCINFRA

Stock Analysis Report

Executive Summary

PNC Infratech Limited, together with its subsidiaries, operates as an infrastructure construction, development, and management company in India.

Rewards

PE ratio (8.3x) is below the Indian market (13.4x)

Revenue is forecast to grow 11.43% per year

Earnings grew by 93.6% over the past year

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Solid track record and slightly overvalued.


Similar Companies

Share Price & News

How has PNC Infratech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PNCINFRA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

PNCINFRA

-1.8%

IN Construction

-0.4%

IN Market


1 Year Return

47.7%

PNCINFRA

1.5%

IN Construction

11.1%

IN Market

Return vs Industry: PNCINFRA exceeded the Indian Construction industry which returned 1.5% over the past year.

Return vs Market: PNCINFRA exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

PNCINFRAIndustryMarket
7 Day1.2%-1.8%-0.4%
30 Day2.5%-3.0%-1.5%
90 Day7.7%-4.0%3.3%
1 Year48.1%47.7%2.8%1.5%13.0%11.1%
3 Year95.2%93.3%13.3%9.2%25.3%18.6%
5 Yearn/a14.2%7.8%35.4%23.1%

Price Volatility Vs. Market

How volatile is PNC Infratech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PNC Infratech undervalued compared to its fair value and its price relative to the market?

8.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PNCINFRA (₹202.4) is trading above our estimate of fair value (₹169.53)

Significantly Below Fair Value: PNCINFRA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PNCINFRA is good value based on its PE Ratio (8.3x) compared to the Construction industry average (10.7x).

PE vs Market: PNCINFRA is good value based on its PE Ratio (8.3x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: PNCINFRA is poor value based on its PEG Ratio (11.8x)


Price to Book Ratio

PB vs Industry: PNCINFRA is overvalued based on its PB Ratio (2.2x) compared to the IN Construction industry average (0.6x).


Next Steps

Future Growth

How is PNC Infratech forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNCINFRA's forecast earnings growth (0.7% per year) is below the savings rate (6.5%).

Earnings vs Market: PNCINFRA's earnings (0.7% per year) are forecast to grow slower than the Indian market (20.4% per year).

High Growth Earnings: PNCINFRA's earnings are forecast to grow, but not significantly.

Revenue vs Market: PNCINFRA's revenue (11.4% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: PNCINFRA's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PNCINFRA's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has PNC Infratech performed over the past 5 years?

36.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNCINFRA has high quality earnings.

Growing Profit Margin: PNCINFRA's current net profit margins (11.4%) are higher than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: PNCINFRA's earnings have grown significantly by 36% per year over the past 5 years.

Accelerating Growth: PNCINFRA's earnings growth over the past year (93.6%) exceeds its 5-year average (36% per year).

Earnings vs Industry: PNCINFRA earnings growth over the past year (93.6%) exceeded the Construction industry 3.2%.


Return on Equity

High ROE: Whilst PNCINFRA's Return on Equity (26.17%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PNC Infratech's financial position?


Financial Position Analysis

Short Term Liabilities: PNCINFRA's short term assets (₹17.6B) exceed its short term liabilities (₹14.6B).

Long Term Liabilities: PNCINFRA's short term assets (₹17.6B) do not cover its long term liabilities (₹42.7B).


Debt to Equity History and Analysis

Debt Level: PNCINFRA's debt to equity ratio (115%) is considered high.

Reducing Debt: PNCINFRA's debt to equity ratio has reduced from 183.9% to 115% over the past 5 years.

Debt Coverage: PNCINFRA's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: PNCINFRA's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: PNCINFRA has a low level of unsold assets or inventory.

Debt Coverage by Assets: PNCINFRA's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is PNC Infratech's current dividend yield, its reliability and sustainability?

0.25%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.5%industryaverage1.4%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: PNCINFRA's dividend (0.25%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: PNCINFRA's dividend (0.25%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).


Stability and Growth of Payments

Stable Dividend: PNCINFRA is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: PNCINFRA is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: PNCINFRA is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PNCINFRA's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Pradeep Jain (62yo)

₹23,400,000

Compensation

Mr. Pradeep Kumar Jain serves as Chairman and Managing Director of PNC Infratech Ltd. and is its one of the Promoters. Mr. Jain responsibilities include overall administration and supervision of projects a ...


CEO Compensation Analysis

Compensation vs Market: Pradeep's total compensation ($USD327.21K) is about average for companies of similar size in the Indian market ($USD397.73K).

Compensation vs Earnings: Pradeep's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pradeep Jain
Chairman & MD0yrs₹23.40m11.6% 6.0b
Chakresh Jain
MD, CFO13.3yrs₹4.37m11.6% 6.0b
Yogesh Jain
MD & Executive Director13.3yrs₹4.37m11.6% 6.0b
Tapan Jain
Compliance Officer & Company Secretary3.1yrs₹1.40mno data
M. Anil Rao
Whole Time Director19.3yrs₹7.29m0.031% 16.3m
Vishveshwar Sharma
General Manager of Operations0yrsno datano data
Satya Singh
General Manager of Human Resources11.2yrsno datano data
Talluri Rao
Executive VP of Infrastructure & Additional Executive Director0.5yrs₹2.68m0.0016% 811.0k
Rakesh Khanduri
Head of Structures Department10yrsno datano data
Devendra Maheshwari
Assistant Vice President of Finance0yrs₹924.00kno data

8.3yrs

Average Tenure

55yo

Average Age

Experienced Management: PNCINFRA's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pradeep Jain
Chairman & MD0yrs₹23.40m11.6% 6.0b
Chakresh Jain
MD, CFO13.3yrs₹4.37m11.6% 6.0b
Yogesh Jain
MD & Executive Director13.3yrs₹4.37m11.6% 6.0b
M. Anil Rao
Whole Time Director19.3yrs₹7.29m0.031% 16.3m
Talluri Rao
Executive VP of Infrastructure & Additional Executive Director0.5yrs₹2.68m0.0016% 811.0k
Chhotu Sharma
Independent Non-Executive Director12.3yrs₹110.00k0.0018% 909.8k
Ashok Gupta
Independent Non-Executive Director10.3yrs₹230.00kno data
Gauri Shankar
Independent Non-Executive Director1.8yrs₹60.00kno data
Deepika Mittal
Independent Non-Executive Director5.4yrs₹140.00kno data
Krishan Jalan
Independent Non-Executive Director1yrsno datano data

10.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: PNCINFRA's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PNC Infratech Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PNC Infratech Limited
  • Ticker: PNCINFRA
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹51.988b
  • Shares outstanding: 256.54m
  • Website: https://www.pncinfratech.com

Number of Employees


Location

  • PNC Infratech Limited
  • PNC House
  • 3/22-D, Civil Lines
  • Agra
  • Uttar Pradesh
  • 282005
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539150BSE (Mumbai Stock Exchange)INR2ININRNo data
539150BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2015
PNCINFRANSEI (National Stock Exchange of India)YesEquity SharesININRMay 2015

Biography

PNC Infratech Limited, together with its subsidiaries, operates as an infrastructure construction, development, and management company in India. The company undertakes various infrastructure projects, including highways, bridges, flyovers, power transmission lines, airport runways and pavements, track construction for rail freight corridors, industrial area development, and other infrastructure projects. It also provides end-to-end infrastructure implementation solutions, such as engineering, procurement, and construction services on a fixed-sum turnkey basis, as well as on an item rate basis; and executes and implements projects on a design-build-finance-operate-transfer, operate-maintain-transfer, hybrid annuity model, and other PPP formats. The company was formerly known as PNC Construction Company Limited and changed its name to PNC Infratech Limited in August 2007. PNC Infratech Limited was founded in 1989 and is headquartered in Agra, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 13:05
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.