Small-cap stock PNC Infratech surges 12%; is it a stock to buy?

Small-cap stock PNC Infratech jumped almost 12 per cent in intraday trade on the BSE on Thursday, June 5, a day after the company conducted a conference call with investors and analysts to discuss the audited financial results for the quarter and financial year ended March 31, 2025. PNC Infratech share price opened at ₹285.25 against its previous close of ₹285.10 and surged 11.72 per cent to an intraday high of ₹318.50. Around 11 AM, the small-cap stock traded 9.52 per cent higher at ₹312.25.

PNC Infratech share price has been under pressure over the last year, delivering a negative return of over 30 per cent. Year-to-date, the small-cap stock has declined nearly 5 per cent.

PNC Infratech share price hit a 52-week high of ₹552 on June 6 last year and a 52-week low of ₹235.70 on April 7 this year.

PNC Infratech Q4 results

On May 30, PNC Infratech said its Q4FY25 consolidated profit after tax (PAT) stood at ₹75 crore compared to ₹396 crore (including ₹222 crore arbitration award) in Q4FY24.

Consolidated revenue for the quarter stood at ₹1,704 crore against ₹2,600 crore (including ₹296.79 crore arbitration award) in Q4FY24.

EBITDA for the quarter came at ₹362 crore against ₹736 crore (including ₹296.79 crore arbitration award) in Q4FY24.

PNC Infratech said its remaining value of contracts under execution is over ₹17,700 crore, including a contract worth ₹4,097 crore where the appointed date is awaited.

Is PNC Infratech a stock to buy?

PNC Infratech reported weak Q4 earnings. However, some experts point out the company's bright growth outlook and the stock's attractive valuation, which suggests one can consider buying it at the current juncture.

Axis Securities maintained its buy call on the stock but raised the target price to ₹340 from ₹300 earlier, citing the company's robust order book.

Axis expects the company to deliver a revenue growth of 20 per cent CAGR over FY25-27E.

"A boost in the infrastructure sector is expected with a pick-up in awarding activity and the recent allocation of ₹2.8 lakh crore to MoRTH in the Budget 2025-26. We expect the company to report revenue growth of 25 per cent in FY26, backed by a robust and diversified order book, strong order inflow, especially after the closure of the MoRTH ban, a debt-free balance sheet, and favourable government support," said Axis Securities.

Brokerage firm JM Financial maintained a buy call on the stock but cut the target price to ₹450 from ₹470 earlier.

The brokerage firm pointed out that about 66 per cent of the current backlog is under execution, and the entire backlog is expected to be executed by September 2025.

JM Financial underscored that PNC has guided for 20 per cent revenue growth, which implies 30 per cent growth over the adjusted base of the previous year, and expects EBITDA margins of 13 per cent for FY26E.

"Given the delay in receipt of appointed dates, we have lowered revenue, leading to an EPS cut of 4 per cent and 3 per cent in FY26E and FY27E, respectively. Valuations at 11 times and 9.5 times FY26E and FY27E, respectively, EPS (earnings per share) remain attractive. We value EPC business at 13 times FY27 EPS and assets at ₹59 to arrive at SOTP-based revised price target of ₹450," said JM Financial.

Nuvama Institutional Equities has maintained a hold call on the stock and slightly increased the SotP-based target price to ₹286 from ₹281 earlier.

"While PNC’s operating performance has remained soft, improving balance sheet health and higher other income compel us to revise FY26E and FY27E EPS upwards by 14 per cent and 12 per cent, respectively, and PE multiple to 8 times from 7 times earlier," Nuvama said.

While the stock appears to be a good long-term bet, some technical experts believe investors may consider booking some profits at this juncture.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, highlighted that PNC Infratech stock is encountering resistance near the R1 floor of the monthly Camarilla pivot, in the ₹318–320 zone.

"A decisive close above ₹320 could open the path toward the ₹340 mark. Considering the resistance, this may be an ideal point to book partial profits," said Patel.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.