PNC Infratech Limited

Industrials — Engineering & Construction · NSE

₹144.35+₹1.34 (+0.94%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of PNC Infratech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

PNC Infratech Limited, together with its subsidiaries, engages in the investment, development, construction, operation, and management of infrastructure projects in India.

IndustryEngineering & Construction

SectorIndustrials

Employees4,990

Annual revenue₹4,723 Cr

How does it make money?

Turns over ₹4,723 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 4,990 employees supports ₹94.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹94.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.1%

What is the outlook?

14 analysts covering the stock expect revenue to grow about 21.3% and earnings to grow about 26.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.3%

Est. earnings growth+26.7%

Analysts14

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -36% while net margin moved +99% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-36%

Margin effect+99%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 14.0% a year
• Profit CAGR of 8.1%
✗ Profit fell 23.0% in the latest year

Quality vs. Valuation

Company Quality

60/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

5.1x

3Y Median

8.8x

40 monthly readings · mean 10.3x · range 4.1x–20.2x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 43% below its 3y median of 8.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 83% below the peer median of 30.1x.

vs. its own history

Cheap

8.8x median over 40 months · -43%

vs. sector peers

Cheap

30.1x median of 3 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.8x

PEG

0.62

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 22.1% to 24.9% over 3 years.
Debt is being paid down
Total debt is down 18% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 15.4% to 12.2% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 42% against revenue up -36% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 22.1% to 24.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 18% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 43% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 83% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 42% against revenue up -36%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 15.4% to 12.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 23%✓ 24.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹4,267 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 10%✓ 13.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹3,703 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.1x

Cheap

Cheap against the generic band

P/B Ratio

0.54x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹28.54

Profitable

Profitable on a per-share basis

ROE

12.2%

Moderate

Moderate capital efficiency

ROCE

13.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.76x

Moderate

Moderate leverage

Revenue Growth (YoY)

18.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-23.0%

Falling

Profits are shrinking

Dividend Yield

0.42%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹4,267 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

7.2x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

28.7%

Good

Healthy core-business profitability

Net Margin

13.0%

Good

Strong bottom-line conversion

Current Ratio

3.72

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

138.7 / 172.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,423 Cr	₹7,905 Cr	₹5,845 Cr	₹4,723 Cr	-14.0%
EBITDA	₹1,639 Cr	₹2,042 Cr	₹2,136 Cr	₹1,175 Cr	-10.5%
EBITDA Margin	22.1%	25.8%	36.6%	24.9%	—
PAT (Net Profit)	₹658 Cr	₹909 Cr	₹815 Cr	₹832 Cr	+8.1%
EPS	₹25.67	₹35.45	₹31.79	₹32.42	+8.1%
ROE	15.4%	17.5%	13.6%	12.2%	—
ROCE	13.2%	14.2%	12.9%	13.3%	—
Total Debt	₹6,282 Cr	₹8,025 Cr	₹9,364 Cr	₹5,170 Cr	-6.3%
Free Cash Flow	-₹1,517 Cr	-₹282 Cr	-₹91 Cr	₹4,267 Cr	—

🔴 Revenue has shrunk at 14.0% a year over 3 years.

🔴 EBITDA has shrunk at 10.5% a year over 3 years.

🟢 EBITDA Margin has risen from 22.1% to 24.9% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 8.1% a year over 3 years.

🟢 EPS has grown at 8.1% a year over 3 years.

🔴 ROE has fallen from 15.4% to 12.2% over 3 years (-3.2 pts).

🟡 ROCE has held roughly flat at 13.3% over 3 years.

🟢 Total Debt has shrunk at 6.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1,517 Cr to ₹4,267 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13,858 Cr

Total Liabilities

₹7,045 Cr

Cash & Equivalents

₹871 Cr

Operating Cash Flow

₹4,593 Cr

Capex

-₹326 Cr

Shareholding (proxy)

Institutional Holding

26.6%

Insider Holding

56.1%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

23 Sept 2026

Analyst Consensus

Recommendations

12 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹272.71

+88.9% vs CMP

Target Range

₹170 – ₹354

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive1 mixed4 general

PNC Infratech Share Price - Live NSE: PNCINFRA Stock Price & Chart

Upstox, 16 Oct

PNC Infratech jumps 7% after Delhi HC temporarily stays 3-year bidding ban

Business Standard, 14 Oct

PNC Infratech shares jump 4% after Delhi High Court stays three-year NHAI ban

CNBC TV18, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

PNC Infratech shares in focus after Delhi High Court stays NHAI debarment orders

Business Today, 14 Oct

PNC Infratech stock crashes 20%, hits lower circuit after three-year NHAI, MoRTH bidding ban

Moneycontrol.com, 15 Sept

PNC Infratech Q1 FY27 slides: 235% profit jump, but stock falls 6.3%

Investing.com, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑