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

“Given the strong and diversified order book position, healthy bid pipeline, new order inflows, emerging opportunities in the manufacturing sector and efficient and timely execution of the company, we expect PNCIL to generate revenue / EBITDA of 15% / 16% / /APAT will report a CAGR of 26% in FY21-FY24E respectively,” the brokerage said in a note.

It has launched coverage on PNC Infratech Limited (PNCIL) on Multibagger stock with a buy recommendation and target price of Rs. ₹440 per share, representing an increase of over 20% from current levels.

Company’s healthy cumulative order book ₹15,522 crores indicating comfortable revenue visibility for the next 2-3 years. While it continues to strive to capture opportunities in the construction sector, it is increasingly looking at opportunities in the public sector to capitalize on government spending on infra development. Backed 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 significant investments in the space with policy support from the government.

Over the years, PNCIL has harnessed a strong financial performance and credit profile reflecting its weak and strong balance sheet, low debt/equity ratio and high interest coverage ratio. “We expect the company’s capital structure to remain healthy from a medium to long-term outlook, enabling it to efficiently capture emerging opportunities,” Axis Securities said in a note.

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