Active Stocks
Tue Apr 16 2024 15:59:30
  1. Tata Steel share price
  2. 160.05 -0.53%
  1. Infosys share price
  2. 1,414.75 -3.65%
  1. NTPC share price
  2. 359.40 -0.54%
  1. State Bank Of India share price
  2. 751.90 -0.65%
  1. HDFC Bank share price
  2. 1,509.40 0.97%
Business News/ Markets / Stock Markets/  This multibagger stock is up 106% this year. Axis Securities sees further upside

This multibagger stock is up 106% this year. Axis Securities sees further upside

The domestic brokerage firm has initiated coverage on the multibagger stock with a Buy recommendation

PNC Infratech shares have surged 106% this year so farPremium
PNC Infratech shares have surged 106% this year so far

PNC Infratech shares have delivered multibagger returns this year so far as they have surged over 106% in 2021 (year-to-date). Axis Securities sees further upside on the stock and has a Buy tag on the infra stock as it believes PNC Infra is well-placed to take advantage of the government push to the infrastructure development and emerging opportunities in the construction space.

“Considering strong and diversified order book position, healthy bidding pipeline, new order inflows, emerging opportunities in the construction space, and the company’s efficient and timely execution, we expect PNCIL to report Revenue/EBITDA/APAT CAGR of 15%/16%/26% respectively over FY21-FY24E,"  the brokerage said in a note.

It has initiated coverage on PNC Infratech Limited (PNCIL) with a Buy recommendation on the multibagger stock and a target price of 440 per share, implying an upside of more than 20% from the current levels.

The company’s healthy cumulative order book of 15,522 Cr reflects comfortable revenue visibility for the next 2-3 years. While it continues to strive capturing opportunities in the construction space, it is increasingly eyeing opportunities from the public sector to capitalise on the government’s spending on Infra development. Supported by the company’s healthy and diversified order book and emerging opportunities, Axis Securities expects PNCIL to deliver healthy revenue growth. 

The brokerage believes that the road construction industry in India is undergoing a paradigm shift with notable investments in the space along with policy support by the government.

Over the years, PNCIL has harnessed a strong financial performance and credit profile which reflects in its lean and robust balance sheet, low Debt/Equity Ratio, and high interest coverage ratio. “We expect the capital structure of the company to remain healthy from the medium to longterm perspective, enabling it to efficiently capture emerging opportunities, moving forward," Axis Securities said in a note.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 04 Oct 2021, 10:23 AM IST
Next Story footLogo
Recommended For You

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App