Shares of this small-cap infra stock jumped around 3 percent in Tuesday’s trading session after the company emerged as the lowest bidder for a highway project worth Rs 1,174 crores in Madhya Pradesh.
With a market capitalization of Rs 9,037.87 crores, the stocks of PNC Infratech Limited started their trading session on Tuesday at Rs 361.95 and currently trade at Rs 352.30, gaining approximately 3 percent compared to the previous closing levels of Rs 343.30 apiece.
Such stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about emerging as the lowest bidder for a highway project under Madhya Pradesh Road Development Corporation (MPRDC) worth Rs 1,174 crores.
The project pertains to the construction of the Western Bhopal Bypass as a 4-lane with paved shoulders along with service roads starting from Jabalpur-Bhopal Road (NH46) and ending at Bhopal Dewas Road (SH-28). The project is procured under the Hybrid Annuity Mode (HAM) with a total design length is 40.90 kilometers.
The total period for the construction work is 24 months and the ‘operation’ period consists of 15 years after the construction phase is completed.
During the recent financial quarters, the company’s prime indicators of business such as operating revenues and net profits saw a dip in numbers. The former fell from Rs 2,091.7 crores during Q1FY23-24 to Rs 1,911.38 crores during Q2FY23-24, and, the latter, during the same period, went down from Rs 180.62 crores to Rs 147.91 crores.
As per the recent presentations, the company has procured a series of orders from the National Highway Authority of India (NHAI) that are under construction and will generate revenue (remaining value) of approximately Rs 5,400 crores. Moreover, the “Road EPC” projects constitute 62 percent of the total order book of the company.
PNC Infratech Limited is an infrastructure company that constructs highways, power transmission lines, airport runways, etc. Deriving key revenue from the “EPC contract” segment, the company’s operations are executed across various states in India including Punjab, Rajasthan, Delhi, and many others.
Written by Amit Madnani
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