Shares of this infra stock under the ‘small-cap’ category jumped nearly 3 percent in Tuesday’s trading session after the company received a Letter of Acceptance (LoA) for an EPC contract worth Rs 699 crores. Year-to-date, the company’s stock has gained more than 30 percent for its stakeholders.
With a market capitalization of Rs 11,667.40 crores, the stocks of PNC Infratech Limited opened their trading hour on Tuesday at Rs 455.90 and currently trade at Rs 460, gaining approximately 3 percent compared to the previous close of Rs 447.10 apiece.
Such bullish movements in the company’s share price is witnessed post a recent regulatory filing with the Bombay Stock Exchange (BSE) intimating the receipt of a Letter of Acceptance (LoA) for a domestic EPC order in Madhya Pradesh.
The abovementioned order is awarded by the “Madhya Pradesh Public Works Department” (M.P.P.W.D.) for the construction of a 4-lane elevated corridor/flyover on an EPC basis in the state. The contract is worth Rs 699 crores and the same is expected to be completed within 36 months.
During the recent financial quarters, the company’s prime indicators of business, i.e., operating revenues as well as after-tax profits, were on the rise with the former rising from Rs 1,911 crores during Q2FY24 to Rs 2,046 crores during Q3FY24, and the latter, during the same time horizon, shifting up from Rs 147 crores to Rs 185 crores.
Historically, the company has maintained decent levels of return ratios in FY23 with the return on equity (RoE) reported at 15.36 percent and the return on capital employed (RoCE) at 13.30 percent.
According to the recent presentations, the company’s total contract under execution is more than Rs 17,380 crores and the same is over 2.50 times of the company’s total revenue during FY23. Out of the contracts mentioned above, ‘Road EPC’ projects constitute nearly 75 percent of the company’s total order book.
Incorporated in 1999, PNC Infratech Limited is engaged in constructing bridges, highways, flyovers, power transmission lines, airport runways, etc.
The company also offers end-to-end infrastructure implementation solutions including EPC services. The company’s operations are executed across various Indian states including Rajasthan, Punjab, Haryana, etc.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
