2 weeks Ago
PNC Infratech shares jumped nearly 12% in early trade on December 11, 2024. This is the biggest single-day gain for the stock since the June quarter. The company said it had earned a bonus of ₹4.
4 crore for completing a major Uttar Pradesh road project ahead of schedule. PNC Infratech NHAI Bonus of ₹738 Crore The construction giant completed a ₹738 crore road project, the four-laning of National Highway 53, two months ahead of the deadline, thus becoming eligible for and receiving a bonus from NHAI. PNC Infratech Stock High Trading Volume The company's share on NSE at 10:02 AM was quoted at ₹341.
Trading volumes for the stock increased, with almost 69 lakh shares changing hands. This volume is much larger than the average one-month daily traded volume of 10 lakh for PNC Infratech shares. PNC Infratech's strong order books are boosting optimism around the company.
As of the September 2024 quarter, the order book stood at ₹19,909 crore, reaching higher than the FY24 figure of ₹15,400 crore. Road EPC projects form about 76% of this order book, making PNC Infratech a key player in the infrastructure sector. MoRTH Ban Issues Challenges Despite all positive developments, PNC Infratech has still faced several setbacks.
For instance, the Ministry of Road Transport and Highways (MoRTH) disqualified the company and its subsidiaries from participating in new tenders for a year. This ban was imposed after a bribery case involving four employees of the construction giant was filed by the CBI. Brokerage Adjusts Estimates Amid Uncertainty In light of these challenges, brokerage firm Sharekhan revised its estimates for the stock and decreased its valuation multiple to allow for the medium-term uncertainty.
Nonetheless, Sharekhan has maintained its ‘Buy’ recommendation for the stock with a target price of ₹400. Investors are keeping a sharp eye on PNC Infratech shares while analysts remain bullish on the stock’s future..
