Shares of PNC Infratech zoomed nearly 12 percent in early trade on December 11, clocking its biggest single-day gains in six months. This comes after the company earned a bonus of Rs 4.4 crore due to the early completion of a road project in Uttar Pradesh.
The company completed a Rs 738 crore project, awarded by the National Highways Authority of India, for the four laning of national highway-53, two months before its stipulated time, making it eligible to earn an early completion bonus.
At 10.02 am, shares of PNC Infratech were trading at Rs 340.75 on the NSE. With the steep upmove in the today's session, trading volumes in the counter also skyrocketed. As many as 69 lakh shares changed hands so far, already surpassing the one-month daily traded average of 10 lakh shares by a wide margin.
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PNC Infra also boasts a strong order book which stood at Rs 19,909 crore at the end of the September quarter. The order book by the end of the first half of FY25 has already surpassed that seen in entire FY24. The company's order book at the end of FY24 stood at Rs15,400 crore, with the majority comprising of road EPC (Engineering, Construction and Procurement) projects, making up for around 76 percent of the total.
However, sentiment for the stock has taken a hit in the past two months after the Ministry of Roads (MoRTH) disqualified the construction firm and its two subsidiaries from participating in any new tender process of the ministry for a year due to a bribery case filed by the CBI involving four employees of the company.
On that account, brokerage firm Sharekhan had revised its estimates lower for the stock to and also reduced its valuation multiple to factor in the medium-term uncertainties with respect to its disqualification by MoRTH. Sharekhan retained its 'buy' call on the stock with a price target of Rs 400.
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