pnc infratech (pncinf) | 168

ICICI Securities Ltd | Retail Equity Research

Execution to see marked improvement…

PNC reported significant revenue growth of 118.8% YoY to | 758.9

crore (our expectation: | 662.0 crore) led by strong execution as it

received appointed dates for several of its big ticket projects

EBITDA margins expanded robustly by 770 bps YoY to 21.2% due to

receipt of bonus (| 58 crore) for early completion of Agra Lucknow

and price variation of projects (| 6.5 crore). Adjusting for this,

EBITDA margin was 13.6%, in line with our estimate of 13.5%

PAT grew robustly by 230.9% YoY to | 111.5 crore (our estimate:

| 63.0 crore) led by robust topline growth & strong margin expansion

The board has approved final dividend of | 0.5/ share for FY18

Execution set to pick up from FY19E onwards…

PNC’s orderbook was strong at | 7318 crore, providing strong visibility

over the next two to three years. Also, the company has received LoI for

two HAM projects viz. Chakeri-Allahabad worth | 2,159 crore and Aligarh

Kanpur worth | 1197 crore. Also, PNC has been declared lowest bidder in

package 4 of Lucknow Ballia expressway worth | 1738 crore. Apart from

healthy order inflows, the company has received appointed dates for

majority of its big ticket projects viz. Bhojpur-Buxar, Jhansi-Khajuraho

package 2, Nagina Kashipur. This lends us comfort on a sharp pick-up in

execution from FY19E onwards. Consequently, we expect robust topline

growth of 44.6% to | 3884.3 crore in FY18E-20E.

Equity commitment worth | 600 crore in next three years...

PNC has six HAM projects worth | 8118 crore under its kitty. As of now,

four HAM projects have received financial closure while three have

received appointed dates. Altogether, six HAM projects have total equity

commitment of | 650 crore of which ~| 50 crore has been invested so far.

The remaining equity commitment worth | 600 crore is expected to be

invested over the next three years. It would be | 225 crore, | 225 crore,

| 150 crore for FY19E, FY20E, FY21E, respectively. Considering, its almost

net debt free balance sheet coupled with strong internal accruals, funding

the equity requirement should not be an issue for PNC.

Bonus receipts boost EBITDA margins...

EBITDA margin expanded significantly by 770 bps YoY to 21.2% due to

receipt of bonus (| 58 crore) for early completion of Agra Lucknow and

price variation of projects (| 6.5 crore). Adjusting for this, EBITDA margin

was 13.6%, in line with our estimate of 13.5%. Also, the company

received bonus worth | 33.2 crore for early completion of Raebareilly-

Jaunpur project in Q1FY19E. Hence, margins in Q1FY19E would also look

optically higher. However, the management has guided for EBITDA

margins in range of 13.6-13.7% for FY19E & FY20E.

Orderbook to remain buoyant; maintain BUY…

We like PNC given its robust order book, strong execution capabilities and

lean balance sheet with better WC management. Furthermore, we believe

the company is well poised to capture huge opportunities ahead. We

expect revenues to grow at a CAGR of 44.6% in FY18-20E given the

significant ramp-up in execution from FY19E onwards with receipt of

appointed dates for its big ticket projects. Hence, we maintain our BUY

recommendation on the stock with a target price of | 215. We value its

construction business at | 186/share (at 9x FY20E EV/EBITDA implying PE

multiple of 16.2x) and BOT and HAM projects at | 53/share (traffic growth

assumption – 5% per annum).

PNC Infratech (PNCINF) | 168 Rating matrix

Rating : Buy

Target : | 215

Target Period : 12-18 months

Potential Upside : 28%

What’s changed?

Target Unchanged

EPS FY19E Changed from | 8.5 to | 8.0

EPS FY20E Changed from | 8.9 to | 9.9

Rating Unchanged

Quarterly Performance

Q4FY18 Q4FY17 YoY (%) Q3FY18 QoQ (%)

Revenue 758.9 350.6 116.5 472.5 60.6

EBITDA 160.9 47.4 239.5 66.3 142.8

EBITDA (%) 21.2 13.5 768 bps 14.0 718 bps

PAT 111.5 33.7 230.9 93.1 19.8

Key Financials

(| crore) FY17 FY18E FY19E FY20E

Net Sales 1,676.0 1,856.6 2,686.5 3,884.3

EBITDA 221.0 318.8 364.6 531.1

Net Profit 209.7 251.0 205.4 253.1

EPS (|) 8.2 9.8 8.0 9.9

Valuation summary

(x) FY17 FY18E FY19E FY20E

P/E 20.9 17.4 21.3 17.3

Target P/E 26.3 22.0 26.9 21.8

EV / EBITDA 20.3 13.8 12.9 9.5

P/BV 2.8 2.4 2.2 2.0

RoNW (%) 9.7 13.9 10.3 11.4

RoCE (%) 13.2 13.4 11.9 14.8

Stock data

Particular Amount (| crore)

Market Capitalization 4,375.3

Total Debt 170.0

Cash 147.3

EV 4,398.0

52 week H/L (|) 228 / 130

Equity capital 51.3

Face value | 2

Comparative Return Matrix (%)

Return % 1M 3M 6M 12M

PNC Infratech (1.1) 3.5 (8.4) 21.7

Sadbhav Engg (9.1) (9.8) 0.8 17.8

Ashoka Buildcon (5.9) 15.7 7.6 31.4

IRB Infra (11.8) 1.8 0.6 10.9

Research Analyst

Deepak Purswani, CFA

deepak,[email protected]

Vaibhav Shah

[email protected]

Result Update

mailto:[email protected]


Variance Analysis

Particulars Q4FY18 Q4FY18E Q4FY17 YoY (%) Q3FY18 QoQ (%) Comments

Total Operating Income 758.9 662.0 350.6 116.5 472.5 60.6 Topline growth was led by strong execution during the quarter

Other Income 6.6 5.4 10.6 -37.3 5.7 17.3

Net Raw material consumed 489.5 484.5 233.2 109.9 319.8 53.1

Employee benefit expenses 37.6 18.2 24.7 52.0 36.2 3.8

Other Expenses 70.9 70.0 45.2 56.8 50.2 41.2

EBITDA 160.9 89.3 47.4 239.5 66.3 142.8

EBITDA Margin(%) 21.2 13.5 13.5 768 bps 14.0 718 bps Margin expansion on account of receipt of bonus

Depreciation 21.7 18.2 14.0 54.4 19.6 10.9

Interest 8.5 6.5 8.4 2.1 6.5 31.3

PBT 137.3 70.0 35.6 285.9 45.9 199.4

Taxes 25.8 7.0 1.9 1265.8 -47.2 NM

PAT 111.5 63.0 33.7 230.9 93.1 19.8 The growth in bottomline was mainly on account of margin expansion

and strong topline growth

Source: Company, ICICI Direct Research

Change in estimates

FY20E Comments

(| Crore) Old New % Change Old New % Change

Revenue 1,676.0 1,856.6 2,706.7 2,686.5 -0.7 3,453.0 3,884.3 12.5 We have revised our assumptions upwards given the company's

strong orderbook position with majority of projects having received

appointed dates

EBITDA 221.0 318.8 359.6 364.6 1.4 465.6 531.1 14.1

EBITDA Margin (%) 13.1 17.2 13.3 13.6 27 bps 13.5 13.7 17 bps

PAT 151.9 251.0 219.1 205.4 -6.3 228.4 253.1 10.8

Diluted EPS (|) 8.2 9.8 8.5 8.0 -6.3 8.9 9.9 10.8

FY17 FY18 FY19E


Assumptions

EPC FY15 FY16 FY17 FY18 FY19E FY20E FY19E FY20E Comments

Order Inflow 1,832 3,972 5,668 7,750 6,150 4,150 7,537 7,907

Order Backlog 3,445 5,400 9,392 15,286 18,749 19,014 20,213 24,667

EarlierCurrent



Conference Call Highlights:

Management guidance: The management expects revenue

growth of 40%+ CAGR and EBITDA margin in range of 13.6-

13.7% in FY18E with revenue growth of 25-30% in FY19E. It has

also guided for OI of | 5000-6000 crore in FY19E

HAM Projects update: PNC has six projects in its HAM portfolio of

which four have achieved financial closure and three are under

construction

Equity requirement: The total equity requirement for the six HAM

projects is at | 650 crore over the next three years. Overall, PNC

has infused equity worth | 50 crore in its HAM projects

Execution details: The company expects a robust pick-up in

execution with receipt of appointed dates for majority of its

projects

Capex & debt: The company has guided for a capex of | 100 crore

for FY19E while debt is at | 170 crore as on FY18

Bonus: The company has received bonus worth | 33.2 crore for

early completion of Rae-Bareilly-Jaunpur project. Also, 75% of

this bonus amount would flow to PNC in Q1FY19E

Appointed dates: PNC has received appointed dates for Bhojpur-

Buxar project on April 18, 2018. It expects to receive appointed

dates for two of its three HAM projects in FY19E and remainder in

FY20E

Toll collections: Toll collections in Q4FY18 for various projects are

as follows: | 17.3 crore for Kanpur-Kabrai, | 77.4 crore in Kanpur-

Ayodhya, | 10.5 crore in Bareilly-Almora and | 51 crore for

Ghaziabad-Aligarh project and | 9.7 crore in Narela Industrial

estate. Though collection for Ghaziabad Aligarh project remains

low at | 51 crore, the company has guided for 10-15% traffic

growth ahead for the project


Company Analysis

Exhibit 1: Key EPC projects under execution…

Remaining Value (| crore)

Jhansi –Khajuraho Package I 1162

Chitradurga-Davanagere 1157

Nagina – Kashipur 1094

Jhansi –Khajuraho Package II 1072

Varanasi-Gorakhpur 654

Dausa-Lalsot 477

Top 6 projects 5616

Other Projects 1702

Total 7318


Exhibit 2: Strong order book, consistent order inflow…

1832 3972

5668 7750

6150

4150

1530

2017

1676

1857

2687

3884

3445

5400

9392

15286

18749

19014

2.3

2.7

5.6

7.0

4.9

0

5000

10000

15000

20000

FY15 FY16 FY17 FY18E FY19E FY20E

( |

crore)

0.0

2.0

4.0

6.0

8.0

(x)

Orderinflow Revenue Closing orderbook Orderbook to bill (x)


Exhibit 3: Net working capital days & debt-equity trend…

110

98

98

109

130

121

120

115

0.5

0.2

0.3

0.4 0.4

0.0

0.1 0.1

70

90

110

130

FY13 FY14 FY15 FY16 FY17 FY18 FY19E FY20E

(days)

-0.1

0.1

0.3

0.5

0.7

(x)

Net Working Capital days Debt-Equity



Exhibit 4: BOT project summary

Project % Stake Authority State Stretch Type Kms Lanes

Equity invested

(| crore)

PNC's share of invested

equity (| crore)

Toll collection per

day( | lakh)

Ghaziabad Aligarh 35 NHAI UP NH-91 Toll 125.0 4 194.0 186.0 40.0

Kanpur Kabrai 100 NHAI UP NH-86 Toll 123.0 2 67.5 67.5 17.0

Gwalior Bhind 100 MPRDC MP NH-92 Toll 107.7 2 78.3 78.3 11.5

Bareilly Almora* 100 UPSHA UP SH-37 Toll 54.0 4 74.6 74.6 -

Rae Bareli Jaunpur* 100 NHAI UP NH-23 Annuity 166.4 2 139.6 139.6 -

Narela Industrial Estate 100 DSIIDC Delhi NA Annuity 33.0 NA 35.0 35.0 -

Kanpur Ayodhya 100 NHAI UP NH-28 OMT 217.0 4 0.1 0.1 59.7

Dausa-Lalsot 100 NHAI Rajasthan NH-11A HAM 83.5 4 5 5

Total 826.1 589.1 581.1


*Bareilly Almora commenced its operation in October, 2015 **Ghaziabad Aligarh is partially operational

Exhibit 5: HAM project summary

Project % Stake Authority State/Stretch Stretch Type Kms Lanes

Total Project cost (|

crore)

PNC's share of invested

equity (| crore)

Dausa-Lalsot 100 NHAI Rajasthan NH-11A Hybrid 83.5 4 820.0 46.0

Chitradurga–Davanagere^ 100 NHAI Karnataka NH-48 Hybrid 72.7 6 1338.0 3.0

Jhansi-Khajuraho (Package I) ^ 100 NHAI UP & MP NH-75/76 Hybrid 76.3 4 1342.0 1.0

Jhansi-Khajuraho (Package II) ^ 100 NHAI UP & MP NH-75/76 Hybrid 85.4 4 1262.0 4.0

Chakeri-Allahabad ** 100 NHAI UP NH-2 Hybrid 145.1 6 2159.0 0.0

Aligarh Kanpur*** 100 NHAI UP NH-91 Hybrid 45.0 4 1197.0 0.0

Total 508.0 8118.0 54.0


^Financial Closure Achieved; * Bid Project Cost; **LOI Received ***SPV formed

Exhibit 6: Revenue growth momentum to continue…

1992.1

1676.0

1856.6

2686.5

3884.3

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

FY16 FY17 FY18 FY19E FY20E

(|

crore)

44.6% CAGR

Source: Company, ICICIdirect.com Research

We expect revenues to witness robust growth of 44.6%

CAGR to | 3884.3 crore during FY18-20E with a pick-up in

execution from FY19E onwards


Exhibit 7: EBITDA & EBITDA margin trend…

153.5

155.8

141.9

216.6

265.9

221.0

318.8

364.6

531.1

0.0

100.0

200.0

300.0

400.0

500.0

600.0

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19E FY20E

(|

crore)

8.0

10.0

12.0

14.0

16.0

(%

)

EBITDA EBITDA Margin


Exhibit 8: PAT growth trend…

100.4

154.0

151.9

251.0

205.4

253.1

50.0

100.0

150.0

200.0

250.0

300.0

FY15 FY16 FY17 FY18 FY19E FY20E

(|

crore)

5.0%

7.0%

9.0%

11.0%

13.0%

(%

)

PAT PAT Margin(%)


Exhibit 9: Return ratios trend…

5.0

10.0

15.0

20.0

25.0

30.0

35.0

FY13 FY14 FY15 FY16 FY17 FY18 FY19E FY20E

(%

)

RoE RoCE RoIC

Adjusted RoCE Adjusted RoIC


We expect the EBITDA margin to improve to 13.7% in

FY20E


Outlook and Valuation

We like PNC given its robust order book, strong execution capabilities and

lean balance sheet with better WC management. Furthermore, we believe

the company is well poised to capture huge opportunities ahead. We

expect revenues to grow at a CAGR of 44.6% in FY18-20E given the

significant ramp-up in execution from FY19E onwards with receipt of

appointed dates for majority of projects. Hence, we maintain our BUY

recommendation on the stock with a target price of | 215. We value its

construction business at | 186/share (at 9x FY20E EV/EBITDA implying PE

multiple of 16.2x) and BOT and HAM projects at | 53/share (traffic growth

assumption – 5% per annum).

Exhibit 10: SoTP valuation

Entity Value (| crore) Per share (|) Comment

Construction Business 4,780 186 9.0x FY20 EV/EBITDA

BOT Projects 1,360 53

Ghaziabad Aligarh 116 5

Bareilly Almora 79 3

Gwalior Bhind 192 8

Raibereli Jaunpur 89 3

Narela Industrial Area 150 6

Kanpur Kabrai 234 9

New Projects 500 19

Less:Net Debt 673 26 FY20E net debt

Target Price 5,467 213

Rounded off target price 215


EPC business: We value PNC’s EPC business at | 186/share (at 9x FY20E

EV/EBITDA) considering its reputation of timely/early completion, strength

in balance sheet and a better return profile.

BOT projects: We value PNC’s BOT project portfolio on a free cash flow to

equity (FCFE) basis. To value it, we consider a traffic growth rate of 5%

per annum (except Ghaziabad Aligarh project where we have considered

nil growth in FY18E traffic due to a sharp hike in toll rate following full

CoD) and then 5% per annum). We also consider the cost of equity of

13% for toll based projects and 12% for annuity projects. Based on these

assumptions, we value PNC’s BOT portfolio at | 53/share.

We value its construction business at | 186/share (at 9x

FY20E EV/EBITDA implying PE multiple of 16.2x) and BOT

& HAM projects at | 53/share (traffic growth assumption

– 5% per annum)

We have considered

traffic growth assumption

of 5% p.a. and CoE of

12% for annuity and 13%

for toll based projects.


Financial Summary

Recommendation history vs. Consensus

0

100

200

300

400

500

May-18Feb-18Nov-17Aug-17Jun-17Mar-17Dec-16Sep-16Jun-16Mar-16Dec-15Sep-15Jun-15Dec-14

(|

)

0.0

25.0

50.0

75.0

100.0

125.0

(%

)

Price Idirect target Consensus Target Mean % Consensus with BUY

Source: Bloomberg, Company, ICICI Direct Research

Key events [

Date Event

Mar-16 PNC Infratech declared L1 bidder for 4-laning of Varanasi-Gorakhpur section of NH-29 from 12 to 88 km (Package II from Sandah to Birnon) in Uttar Pradesh under

NHDP Phase-IV . The contract is worth ~| 869 crore and is to be executed on EPC basis.

Mar-16 PNC Infratech achieves CoD of Raebareli-Jaunpur BOT project and is entitled to receive semi annual annuity of | 64.3 crores each during the remaining 15 years of

the concession period

Mar-16 Receives letter of acceptance (LoA) for the project of construction of three lane road on both sides of Sharda Sahayak Feeder Canal from Lucknow-Faizabad to

Lucknow-Sultanpur road worth | 205.7 crore in UP

Mar-16 Declared lowest bidder for project of four laning of Nagina-Kashipur section of NH-74 from 73 to 175 km in the states of Uttarakhand and UP under NHDP IV. The

contract amount for this NHAI project to be executed on EPC basis is | 1155.7 crore

Apr-16 Declared L1 (lowest) bidder for upgradation of Nanau-Dodon section in Aligarh district, UP worth | 119.9 crore

Apr-16 CARE upgrades credit ratings on long term bank facilities (senior debt) to CARE A- from CARE BBB and subordinate debt to CARE BBB+ from CARE BBB- of PNC

Raibareli Highways Pvt Ltd, a subsidiary of PNC Infratech

May-16 PNC Infratech declared L1 (lowest) bidder for extension and resurfacing of runway at Air Force Station, Bakshi Ka Talab, near

Lucknow. The bid amount for this project of Military Engineering Services, is | 140.6 crores.

Jul-16 PNC Infratech declared lowest bidder for ₹ 881 crore highway project under Hybrid annuity mode. The project entails four-laning and two-laning of the Dausa-Lalsot-

Kautham section (83.5 km) of National Highway 11A in Rajasthan.

Jul-16 PNC Infratech awarded an EPC project involving four laning of the Etah to Kasganj road in Uttar Pradesh for a contract value of | 232.9 crore


Top 10 Shareholders Shareholding Pattern

Rank Name Latest Filing Date % O/S Position (m) Change (m)

1 NCJ Infrastructural Consultants Pvt. Ltd. 31-Mar-18 10.4% 26.7 26.7

2 Pppl Constructions Pvt. Ltd. 31-Mar-18 9.3% 23.9 0.0

3 Jain (Yogesh Kumar) 31-Mar-18 8.5% 21.9 0.0

4 Jain (Pradeep Kumar) 31-Mar-18 8.0% 20.6 0.0

5 Jain (Navin Kumar) 31-Mar-18 7.1% 18.1 0.0

6 Jain (Madhavi) 31-Mar-18 7.0% 18.0 0.0

7 HDFC Asset Management Co., Ltd. 31-Mar-18 6.3% 16.2 -2.1

8 Alberta Merchants Pvt. Ltd. 31-Dec-17 6.2% 15.8 0.0

9 Jain (Vaibhav) 31-Mar-18 4.5% 11.7 0.0

10 Jain (Chakresh Kumar) HUF 31-Mar-18 3.6% 9.3 0.0[

(in %) Sep-17 Dec-17 Mar-18

Promoter 56.1 56.1 56.1

Public 43.9 43.9 43.9

Others - - -

Total 100.0 100.0 100.0

Source: Reuters, ICICI Direct Research

Recent Activity

Investor name Value Shares Investor name Value Shares

NCJ Infrastructural Consultants Pvt. Ltd. 71.8 26.7 Jain (Renu) -34.9 -11.7

IDFC Asset Management Company Private Limited 1.8 0.7 Norges Bank Investment Management (NBIM) -12.8 -4.0

UTI Asset Management Co. Ltd. 1.0 0.4 HDFC Asset Management Co., Ltd. -5.7 -2.1

Affin Hwang Asset Management Berhad 0.7 0.2 Goldman Sachs Asset Management International -4.0 -1.5

DHFL Pramerica Asset Managers Private Limited 0.2 0.1 Reliance Nippon Life Asset Management Limited -3.3 -1.1

Buys Sells

Source: Reuters, ICICI Direct Research


Exhibit 11: Profit & Loss Statement

(Year-end March) FY17 FY18 FY19E FY20E

Net Sales 1,676.0 1,856.6 2,686.5 3,884.3

Other operating income 13.2 - - -

Other income 46.6 23.0 8.3 3.5

Total Revenues 1,735.7 1,879.6 2,694.9 3,887.8

Raw Material Expense 1,161.8 1,218.2 1,859.5 2,684.6

(Increase)/decrease in inventories of WIP 24.8 6.0 8.7 12.6

Employee benefit expenses 100.3 124.0 179.4 259.4

Other Expenses 181.2 189.6 274.3 396.6

Total Operating Expenditure 1,468.1 1,537.8 2,321.9 3,353.2

EBITDA 221.0 318.8 364.6 531.1

Interest 20.3 30.7 32.9 60.4

Depreciation 53.3 77.2 89.6 102.0

PBT 193.9 233.9 250.5 372.2

Total Tax (15.8) (17.1) 45.1 119.1

Reported PAT 209.7 251.0 205.4 253.1

Adjusted PAT 151.9 251.0 205.4 253.1

EPS (Diluted) 8.2 9.8 8.0 9.9


Exhibit 12: Cash Flow Statement

(Year-end March) FY17 FY18E FY19E FY20E

Profit after Tax 209.7 251.0 205.4 253.1

Depreciation 53.3 77.2 89.6 102.0

Interest Paid (46.6) (23.0) (8.3) (3.5)

Cash Flow before WC changes 221.0 318.8 364.6 531.1

Net Increase in Current Assets (160.3) (154.4) (629.1) (863.1)

Net Increase in Current Liabilities 157.9 135.5 361.9 522.4

Net CF from Operating Activities 234.4 317.1 52.4 71.3

(Purchase)/Sale of Fixed Assets (135.3) (58.9) (100.0) (100.0)

Purchase of Investment (264.2) (64.9) (225.0) (225.0)

Interest Income 46.6 23.0 8.3 3.5

Net CF from Investing Activities (352.9) (100.8) (316.7) (321.5)

Proceeds from share capital - - - -

Interest Paid (20.3) (30.7) (32.9) (60.4)

Net CF from Financing Activities 96.0 (31.2) 178.1 216.2

Net Cash flow (22.5) 185.1 (86.1) (34.0)

Opening Cash/ Cash Equivalent 97.1 35.5 147.3 61.2

Closing Cash/ Cash Equivalent 35.5 147.3 61.2 27.2


Exhibit 13: Balance Sheet


Liabilities

Share Capital 51.3 51.3 51.3 51.3

Reserves & Surplus 1,520.9 1,755.4 1,941.8 2,171.6

Total Shareholders funds 1,572.2 1,806.7 1,993.1 2,222.9

Secured Loan 147.3 170.0 400.0 700.0

Unsecured Loan - - - -

Total Debt 147.3 170.0 400.0 700.0

Deferred Tax Liability (2.3) (2.0) (2.0) (2.0)

Liability side total 1,717.3 1,974.6 2,391.1 2,920.8

Assets

Gross Block 564.2 623.2 723.2 823.2

Net Block 345.9 404.8 415.2 413.2

Capital WIP 7.8 11.1 11.1 11.1

Non-current Investments 728.5 793.4 1,018.4 1,243.4

Current Assets

Inventories 153.5 175.8 254.3 367.7

Sundry Debtors 630.9 690.0 998.4 1,390.4

Loans and Advances 364.2 412.7 588.8 851.4

Other Current Assets 123.2 147.6 213.6 308.9

Cash 35.5 147.3 61.2 27.2

Total Current Assets 1,307.2 1,573.4 2,116.4 2,945.5

Creditors 236.9 462.8 669.7 968.3

Provisions 24.1 17.6 25.4 36.7

Other Current Liabilities 249.2 205.6 297.5 430.1

Other Long Term Liabilities 164.0 123.7 179.0 258.8

Total Current Liabilities 674.2 809.7 1,171.7 1,694.0

Net Current Assets 633.0 763.7 944.7 1,251.5

Assets side total 1,717.2 1,974.6 2,391.1 2,920.8


Exhibit 14: Key Ratios


Per Share Data

EPS (Fully Diluted) 8.2 9.8 8.0 9.9

Cash EPS 10.3 12.8 11.5 13.8

BV 61.3 70.4 77.7 86.7

Dividend per share 0.8 0.9 0.7 0.9

Operating Ratios

EBITDA / Net Sales 13.2 17.2 13.6 13.7

PAT / Net Sales 9.1 13.5 7.6 6.5

Inventory Days 33 35 34.6 34.6

Debtor Days 137 136 135.6 130.6

Creditor Days 52 91 91.0 91.0

Return Ratios

RoE 9.7 13.9 10.3 11.4

RoCE 13.2 13.4 11.9 14.8

RoIC 10.0 13.3 11.9 14.9

Valuation Ratios

EV / EBITDA 20.3 13.8 12.9 9.5

P/E 20.9 17.4 21.3 17.3

EV / Net Sales 2.7 2.4 1.8 1.3

Market Cap / Sales 2.6 2.4 1.6 1.1

Price to Book Value 2.8 2.4 2.2 2.0

Turnover Ratios

Asset turnover 1.0 0.9 1.1 1.3

Gross Block Turnover 3.0 3.0 3.7 4.7

Solvency Ratios

Debt / Equity 0.1 0.1 0.2 0.3

Current Ratio 1.9 1.8 1.8 1.7

Debt / EBITDA 0.7 0.5 1.1 1.3

Quick Ratio 1.7 1.5 1.5 1.5



ICICI Direct Research Universe (Construction & Infrastructure)

CMP M Cap

(|) TP(|) Rating (| Cr) FY17 FY18E FY19E FY17 FY18E FY19E FY17 FY18E FY19E FY17 FY18E FY19E FY17 FY18E FY19E

IRB Infra (IRBINF) 236 290 Hold 8,239 19.1 21.5 27.7 13.9 12.4 9.6 1.7 1.5 1.6 1.8 1.7 1.5 13.2 13.6 15.2

PNC Infratech (PNCINF) 168 215 Buy 4,307 8.2 6.5 8.6 20.5 26.0 19.4 18.6 16.9 12.2 2.8 2.5 2.3 9.8 9.7 11.6

Sadbhav Engg. (SADENG) 356 450 Buy 6,115 10.9 14.1 14.7 35.7 27.8 26.5 23.0 18.6 15.6 4.0 3.6 3.2 11.3 12.9 12.0

Ashoka Buildcon (ASHBUI) 261 250 Buy 4,924 -0.6 -3.2 3.1 NA NA 71.3 9.5 9.3 8.0 2.1 2.1 2.1 NM NM 2.9

Simplex Infra (SIMCON) 533 740 Buy 2,846 24.3 28.6 35.6 23.7 20.1 16.2 8.9 8.3 7.3 1.9 1.7 1.5 7.9 8.4 9.5

NCC (NAGCON) 119 160 Buy 7,242 4.1 4.8 6.7 29.3 24.9 17.6 12.7 9.9 8.7 1.9 1.7 1.5 6.6 6.8 8.8


Sector / Company

RoE (%)EPS (|) P/E (x) EV/EBITDA (x) P/B (x)


RATING RATIONALE

ICICI Direct Research endeavours to provide objective opinions and recommendations. ICICI Direct Research

assigns ratings to its stocks according to their notional target price vs. current market price and then

categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and

the notional target price is defined as the analysts' valuation for a stock.

Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction;

Buy: >10%/15% for large caps/midcaps, respectively;

Hold: Up to +/-10%;

Sell: -10% or more;

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]


ANALYST CERTIFICATION

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research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or wil l be directly or indirectly related to the specific

recommendation(s) or view(s) in this report.

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It is confirmed that Deepak Purswani, CFA MBA (Finance), Vaibhav Shah, MBA (Finance); Research Analysts of this report have not received any compensation from the companies mentioned in the report

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