PNC Infratech (PNCINFRA)
CyclicalFairStock Score: 45/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹217.92 |
| Market Cap | ₹5,590.5 Cr |
| P/E Ratio | 7.63 |
| ROCE | 13.89% |
| ROE | 6.92% |
| Dividend Yield | 0.28% |
| Profit Growth | 235.04% |
| Debt/Equity | 0.76 |
| Sales Growth | 36.1% |
| Promoter Holding | 56.07% |
| 52-Week Range | ₹158.17 — ₹325 |
| Sector | Construction |
| Book Value | ₹265.33 |
Strengths
- Promoter holding at 56.07% aligns interests.
- P/E of 12.89 and P/B of 1.10 give apparent valuation support if earnings stabilise.
- Book value of ₹201.14 provides a sizeable asset base.
- Latest quarter was profitable: ₹1,201 Cr sales and ₹77 Cr net profit.
- Debt/equity of 0.77 is manageable for a construction company.
Concerns
- Sales down 18.32% and profit down 5.14% reflect contraction.
- ROE of 6.92% is weak for capital-intensive civil construction.
- Piotroski F-Score of 3/9 suggests deteriorating financial health.
- Dividend yield of 0.29% offers little compensation while risk score is 21/100.
AI Analysis
Looking at PNC Infratech, I first ask what the business earns on capital. The answer is not inspiring: return on equity is only 6.92%, while ROCE is 13.89%. A civil construction firm with roads as a core segment needs strong execution and disciplined capital allocation, and these returns don't signal durable quality. Last year sales fell 18.32% and profit fell 5.14%. When revenue shrinks while debt stays at 0.77 times equity, the financial machine is working against the shareholder. The Piotroski F-Score of 3 out of 9 is a red flag. It tells me there are vulnerabilities in profitability, leverage, or operating efficiency. At ₹220.94, the stock trades at 12.89 times earnings and 1.10 times book against book value of ₹201.14. On the surface, that seems reasonable. But Graham always asked for a margin of safety not just in price, but in business stability. With profits declining and returns low, the low multiple may simply reflect the risk. The latest quarter, with sales of ₹1,201 Cr and net profit of ₹77 Cr, shows the company is still operating, yet one quarter doesn't reverse a weak trend. Dividend yield is just 0.29%, so shareholders aren't being paid to wait. Promoter holding of 56.07% is a positive, at least on alignment. But I don't see a wide moat. Construction is competitive, cyclical, and dependent on government spending. This is a cyclical at the down part of its cycle, possibly even a turnaround candidate, but there is no clear evidence of a turn. I would wait for revenue stabilisation, improving ROE, and proof that debt is being controlled.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer