Low PE high ROE stock: This mid-cap construction company declared the L1 (lowest) bidder for projects worth Rs 2004.43 crore!

The stock has a PE of 12.99x whereas the sectoral PE is 34x with an ROE of 18 per cent respectively.   

PNC Infratech Ltd informed that it has been declared the L1 (lowest) bidder for two Highway Projects of NHAI. The projects include the construction of the 6-lane Greenfield Varanasi - Ranchi - Kolkata Highway from the junction with Chandauli and construction of the 6-lane greenfield Varanasi - Ranchi - Kolkata Highway from the junction with Bhabhua.   

Both the projects come under Bharatmala Pariyojana in the state of Bihar on Hybrid Annuity Mode - Package 2 & Package 3. The aggregate bid projects cost is Rs 2004.43 crore(Package 2 project is worth Rs 891 crore and Package 3 project is worth Rs 1,113.43 crore).  

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. Today, shares of the company saw a spurt in volume by more than 1.28 times on BSE.  

Talking about the financials, PNC Infratech Ltd has a market cap of Rs 7430.60 crore. The company reported excellent numbers in both Quarterly Results and annual results. The stock has a PE of 12.99x whereas the sectoral PE is 34x with an ROE of 18 per cent respectively.   

Today, shares of PNC Infratech surged 4.25 per cent to an intraday high of Rs 298.45 per share from its previous closing of Rs 286.30.  At 03:30 pm, shares of the company ended the day in green, up 1.17 per cent to Rs 289.65 per share. Investors should keep an eye on this Mid-Cap stock.