Infra Stock to Buy Now for an Upside of 80%; Do You Own It?
The shares of this small cap company majorly engaged in undertaking infrastructure projects, including highways, bridges, flyovers, power transmission lines and other segments were in focus after brokerage sees significant upside potential.
With the market capitalization of Rs. 3,327 Crores, the shares of PNC Infratech Ltd were trading at around Rs. 130 per share which is 55 percent discount from its 52 week high of Rs.291 per share and is trading at a P/E of 5.35 whereas industry P/E stands at 14.4
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Brokerage View: PL Capital Maintains BUY
PL Capital has reiterated its BUY rating on PNC Infratech, with a revised target price of ₹234 per share against its earlier target of ₹271. The brokerage factors in FY27E and FY28E EPS growth of 15 percent and 28 percent , respectively. Its valuation is based on a sum-of-the-parts approach, supported by the company's net cash balance sheet and attractive valuation multiples of approximately 6 times 1HFY29E EPS and 0.5 times 1HFY29E book value. At the current price of ₹130, the revised target price indicates an upside potential of approximately 80 percent .
PNC Infratech: Operating Performance and Earnings
PNC Infratech reported standalone revenue of ₹1,140 crore in Q2 FY27, registering a 17 percent year-on-year increase. However, EBITDA remained flat at ₹140 crore as elevated diesel and bitumen prices, partly due to the West Asia conflict, weighed on operating profitability. Net profit declined 12 percent YoY to ₹73 crore from ₹86 crore in the corresponding quarter last year. The decline was also impacted by higher depreciation and finance costs, with PAT missing brokerage and consensus estimates.
Strong Bidding Pipeline and Order Book Visibility
The company has identified around 80 projects worth ₹1.8 lakh crore for bidding through January 2027. These include 35 EPC projects, 25 HAM projects and 20 DBOT toll/TBCB projects. PNC Infratech has already submitted 17 bids worth ₹16,600 crore, including a power transmission TBCB project. Its unexecuted order book stands at over ₹18,000 crore, excluding the cancelled BESS project. Highways contribute 63 percent of the order book, while water, canal, railway and airport projects account for 21 percent , and coal mining contributes the remaining 16 percent .
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Court Relief Restores Eligibility for Fresh Orders
An important development for the company was the High Court's interim relief on the NHAI debarment order on October 12, 2026. This has restored PNC Infratech's eligibility to participate in projects floated by NHAI, MoRTH and NHIDCL. The next hearing is scheduled for November 26, 2026. The development improves the company's ability to participate in highway project bidding and pursue fresh order opportunities. Meanwhile, management is also exploring international EPC opportunities in Kazakhstan, Georgia, Uzbekistan and the UAE, with a preference for non-fund-based and multilateral-funded contracts to limit capital commitments and execution risks.
Management Outlook and Execution Plans
Management has retained its FY27 revenue outlook of ₹6,000 crore and FY28 revenue outlook of ₹7,500 crore, along with an EBITDA margin expectation of 12 percent on FY27 core revenue, excluding the ₹217 crore arbitration amount recognised in H1.
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The company has secured ₹4,260 crore in orders so far against its FY27 order inflow target of ₹12,000–15,000 crore, indicating the need for stronger order conversion in the second half. Additionally, the Bhopal Bypass HAM project is expected to receive its appointed date before December 2026, while two new NHAI HAM projects are targeted for Q4 FY27. Management expects 35–40 percent execution of these projects in FY28 and the balance in FY29.