Rs 17,380 crore order book & FIIs increase stake: This civil construction company emerges as the lowest bidder (L1) for 2 orders worth Rs 4,994 crore from MSRDC

The stock is up by 76.4 per cent from its 52-week low of Rs 303.45 per share and generated multibagger returns of over 100 per cent in 3 years.

PNC Infratech Limited emerged victorious on May 21, 2024, by submitting the lowest bids for two significant road projects undertaken by the Maharashtra State Road Development Corporation (MSRDC) under their EPC (Engineering, Procurement, and Construction) program. The combined quoted value for these projects is a staggering Rs 4,994 crore.

The first project involves constructing a 13.8 km stretch of the Access Controlled Pune Ring Road in the Pune district. This section, designated as Package PRR E2, extends from Indori (Km 12+500) to Chimbali (Km 26+300). The project is worth Rs 2,486 crore will be executed in EPC mode and is expected to be completed within 30 months.

The second project focuses on building a 28.895 km segment of the Access Controlled Expressway Connector that links Hindu Hrudaysamrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg (from Jalna to Nanded) with National Highway 61. This specific section, designated as Package JNE-04, falls within the Parbhani district and stretches from Kurnbhari (Km 98+945) to Katneshwar (Km 127+840). Similar to the first project, this one will also be undertaken in EPC mode worth Rs 2,508 crore and is anticipated to be finished within a 30-month timeframe.

These project wins are a major boost for PNC Infratech, significantly enhancing their revenue visibility and contributing to their impressive stock price surge today.

Today, shares of PNC Infratech gained 13.27 per cent to Rs 517.35 per share from its previous closing of Rs 456.75 with an intraday high of Rs 415.10 and an intraday low of Rs 393.65. The stock also made a 52-week high of Rs 535.40 and its 52-week low is Rs 303.45. The shares of the company saw a spurt in volume by more than 25.51 times on BSE.  

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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 13,000 crore. As of December 31, 2023, the company has a robust order book of Rs 17,380 crore which is over 2.5 times of FY23 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 76.4 per cent from its 52-week low of Rs 303.45 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.