Rs 20,400 crore order book & FIIs increase stake: This civil construction company receives Rs 398,60,04,430 from NHAI; details inside!

The stock is up by 81 per cent from its 52-week low of Rs 306.80 per share and generated multibagger returns of over 100 per cent in 3 years.

PNC Infratech's subsidiary, PNC Kanpur Highways Limited (PNCKHL), received a net payment of Rs. 390,62,84,340 (after tax deductions) on May 31, 2024. This payment settles a contractual dispute between PNCKHL and the National Highways Authority of India (NHAI) under the government's 'Vivad Se Vishwas II (Contractual Disputes)' Scheme. The initial claim submitted by PNCKHL was for Rs. 395 crore, and NHAI offered Rs. 391 crore. A final settlement agreement of Rs. 398.6 crore was reached in May 2024.

Earlier, the company received a bonus of Rs 56.38 crore for completing Package 4 of the Nagpur-Mumbai Super Communication Expressway 94 days ahead of schedule. This bonus was awarded by the Maharashtra State Road Development Corporation (MSRDC) and calculated at 0.03 per cent of the project's Rs 1,999.52 crore contract value for each early completion day. The company also secured two new projects under MSRDC's EPC program on May 21, 2024, with a combined value of Rs 4,994 crore. These projects involve constructing a 13.8 km stretch of the Pune Ring Road (Package PRR E2) and a 28.895 km section of the Expressway Connector in Parbhani district, both within 30 months.

Today, shares of PNC Infratech Ltd gained 7.24 per cent to an intraday high of Rs 555.50 per share from its previous closing of Rs 518. The stock’s 52-week high is Rs 574.50 and its 52-week low is Rs 306.80.

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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 14,000 crore. As of March 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 81 per cent from its 52-week low of Rs 306.80 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.