Rs 20,400 crore order book & FIIs increase stake: This civil construction company receives a bonus of Rs 56,38,64,640 from MSRDC

The stock is up by 74.3 per cent from its 52-week low of Rs 305 per share and generated multibagger returns of over 100 per cent in 3 years.

PNC Infratech Limited announced that the company has received a bonus of Rs 56,38,64,640 for early completion of a highway construction project in Maharashtra. The bonus was awarded by the Maharashtra State Road Development Corporation (MSRDC) for completing Package 4 of the Nagpur-Mumbai Super Communication Expressway 94 days ahead of schedule. The contract value for the project was Rs 1,999.52 crore and the bonus amount was calculated at 0.03 per cent of the contract value for each day of early completion. PNC Infratech also included additional project details as required by SEBI regulations.

Earlier, the company secured two major road projects under the Maharashtra State Road Development Corporation's (MSRDC) EPC program on May 21, 2024, with a combined bid value of Rs 4,994 crore. The first project involves constructing a 13.8 km stretch of the Pune Ring Road (Package PRR E2) from Indori to Chimbali for Rs 2,486 crore within 30 months. The second project focuses on building a 28.895 km section of the Expressway Connector linking the Hindu Hrudaysamrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg with National Highway 61 (Package JNE-04) in Parbhani district for Rs 2,508 crore, also to be completed in 30 months using the EPC mode.

Today, shares of PNC Infratech gained 3.32 per cent to an intraday high of Rs 531.60 per share from its previous closing of Rs 514.50. The stock’s 52-week high is Rs 574.50 and its 52-week low is Rs 305.

Also Read: Rs 2,326 crore order book & FIIs increase stake: Heavy buying in this multibagger engineering stock at Rs 21.34; Hits upper circuits & FY24 results tomorrow!

PNC Infratech Limited is one of the front-ending infrastructure projects, including highways, bridges, flyovers, power transmission lines and towers, airport runways, industrial area development, and other infrastructure activities.

The company has a market cap of over Rs 13,000 crore. As of December 31, 2023, the company has a robust order book of Rs 20,400 crore (incl. contracts worth Rs 4,994 crore where the company is L1) is over 2.7 times FY24 revenue. In March 2024, FIIs increased their stake to 11.85 per cent compared to 10.98 per cent in December 2023.  

The shares of the company have a PE of 20x, an ROE of 16.2 per cent and an ROCE of 15 per cent. The stock is up by 74.3 per cent from its 52-week low of Rs 305 per share and generated multibagger returns of over 100 per cent in 3 years. Investors should keep an eye on this Mid-Cap civil construction stock.

Disclaimer: The article is for informational purposes only and not investment advice.