PNC Infratech shares rise 13% on winning Rs 4,384-crore highway contract

Shares of PNC Infratech rose 13 per cent today after the infrastructure development and construction company said it has emerged as the lowest bidder for three new national highway projects to be built on hybrid annuity model (HAM) at a cost of Rs 4,384 crore.

The stock opened with a gain of 2.82 per cent at Rs 252 against the previous close of Rs 245.10 on the BSE. PNC Infratech stock gained after three days of consecutive fall.

The mid cap stock touched an intraday high of Rs 277.2, gaining 13.1 per cent on the BSE.

The share stands higher than the 5 day moving average but lower than 20 day, 50 day, 100 day and 200 day moving averages.  It ended 11.22 per cent higher at Rs 272.60 on the BSE today.

The stock has gained 2.11 per cent in one year and this financial year.

A total of 1.31 lakh shares of the company changed hands on Wednesday, amounting to a turnover of Rs 3.48 crore on the BSE.

The company emerged as the lowest bidder for construction of six-lane road of package-I of Kanpur-Lucknow Expressway of 17.15 kilometre (km) length and package-II of the same Expressway of length 45.24 km.

The company bid for a project cost of Rs 1,413 crore for the former and Rs 1,513 crore for the latter. Both the projects have to be constructed in 30 months.

The company also emerged as the lowest bidder for four laning of Sonauli-Gorakhpur section of NH-29E in Uttar Pradesh for a length of 79.54 km. The project is to be completed in 24 months at a cost of Rs 1,458 crore.

Meanwhile, brokerage Sharekhan has retained its 'Buy' call on PNC Infratech with a revised price target of Rs 380, factoring downward revision in net earnings estimates.

"Standalone execution was lower than expectations, while operational margins adjusted for impairment of an asset broadly remained in line. Order inflow remained muted year-to-date. Order book at Rs 14,390 crore is 2.4 times its trailing twelve months standalone revenue. Management has lowered its standalone revenue growth guidance for FY2022, while it retains order inflow guidance of Rs 8,000 crore. Asset divestment decision to be taken by FY2022 end with proposals under evaluation," the brokerage said.