PNC Infratech shares down 20% today, here's why

Shares of PNC Infratech hit the lower circuit of 20% in early deals today after the Ministry of Road Transport & Highways disqualified the infra player along with its two subsidiaries from participating in any tender process of the Ministry. PNC Infratech stock opened lower at Rs 439.95 today against the previous close of Rs 458.35 on BSE. Total 1.19 lakh shares of PNC Infratech changed hands amounting to a turnover of Rs 4.53 crore on BSE.PNC Infratech's market cap slipped to Rs 9,407 crore on BSE.  

The infra stock fell to a 52-week low of Rs 310.05 on November 9, 2023. PNC Infratech shares were stuck in the lower circuit of 20% at Rs 366.70 in the afternoon session. Total 1.19 lakh shares of PNC Infratech changed hands amounting to a turnover of Rs 4.53 crore on BSE. 

PNC Infratech shares have a beta of 1.2, indicating very high volatility in a year. In terms of technicals, the relative strength index (RSI) of the stock stands at 56.4, signaling it's trading neither in the overbought nor in the oversold zone. PNC Infratech stock is trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. 

The company it has been barred from participating in the tender process for one year, starting October 18, 2024.

In June and August this year, CBI filed a chargesheet and FIR against PNC Infratech and its subsidiary companies, PNC Khajuraho Highways Pvt. Ltd. and PNC Bundelkhand Highways Pvt. Ltd. They appeared before the ministry on October 18 for a personal hearing with regards to the FIR and the Charge Sheet. 

The infra player said there would be no impact on the ongoing development, construction and O&M activities, the impact on other activities will be evaluated and intimated.

PNC Infratech provides end-to-end infrastructure implementation solutions, including EPC services on both an item rate and a fixed-sum turnkey basis. The company also carries out and implements projects using various public-private partnership models, such as Design-Build-Finance-Operate- Transfer (DBFOT) and Operate-Maintain-Transfer (OMT).