PNC Infratech’s acquisition of the Rs 1,174 crore project for the Western Bhopal Bypass underscores the company’s unwavering dedication to advancing India’s infrastructure landscape. This noteworthy achievement positions PNC Infratech at the forefront of driving transformative infrastructure projects, paving the way for sustained growth and impactful development.
PNC Infratech Ltd has secured a substantial order from Madhya Pradesh Road Development Corporation (MPRDC) for the construction of a 40.90 km 4-lane Western Bhopal Bypass, including paved shoulders and a service road. This venture, valued at an impressive Rs 1,174 crore, will be executed under the hybrid annuity mode (HAM) and completed within 24 months, followed by a 15-year operational period.
Strategic Move: PNC Infratech Sells 12 Road Projects to Pursue New Growth Avenues
In a significant strategic maneuver, PNC Infratech and its subsidiary have divested 12 road projects across four states to Highways Infrastructure Trust for Rs 9,005.7 crore. This bold move marks a shift towards fresh growth prospects within the road sector, aligning with the Indian government’s ambitious infrastructure initiatives.
Company Overview
PNC Infratech Limited is a key player in spearheading diversified infrastructure projects, encompassing highways, bridges, flyovers, power transmission lines and towers, airport runways, and industrial area development.
Financial Standing
With a market capitalization exceeding Rs 10,000 crore and a robust order book of Rs 17,800 crore (including an additional Rs 4,412 crore contract), PNC Infratech stands as a formidable force in the infrastructure landscape.
Notable Investment Activity
In December 2023, foreign institutional investors (FIIs) increased their stake in the company to 10.98 per cent from 10.78 per cent, signaling a vote of confidence in PNC Infratech’s potential.
Stock Performance
Today, PNC Infratech’s shares witnessed an uptick of 0.21 per cent, reaching Rs 414.30 per share. The stock recorded an intraday high of Rs 415.10 and a low of Rs 393.65. In the last 52 weeks, the stock achieved a high of Rs 420.85 and a low of Rs 261.25, accompanied by a significant surge in trading volume on the Bombay Stock Exchange (BSE).
Investor Outlook
Displaying a price-to-earnings (PE) ratio of 17x, a return on equity (ROE) of 16.2 per cent, and a return on capital employed (ROCE) of 15 per cent, PNC Infratech’s stock has exhibited remarkable growth, delivering over 120 per cent multibagger returns in 3 years and rising by 59 per cent from its 52-week low. With such promising indicators, investors are advised to closely monitor this mid-cap civil construction stock.
