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PNC Infratech rises after the company bags Rs 14,60-crore order from NHAI

The company said it will work on four laning of Sonauli - Gorakhpur section of NH-29E in Uttar Pradesh. The road length under the project is 79.54 kilometers

September 09, 2022 / 11:07 AM IST
 
 
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Shares of PNC Infratech rose after the company said it has signed agreement for a hybrid annuity model (HAM) project with National Highways Authority of India (NHAI).

“PNC Infratech Limited informs of signing of concession agreement between National Highways Authority of India and the Special Purpose Vehicle incorporated by the Company for implementation of the following HAM project package on 8 September 2022,” the company said in a regulatory filing.

The company said it will work on four laning of Sonauli - Gorakhpur section of NH-29E in Uttar Pradesh. The road length under the project is 79.54 kilometers.

The project cost is Rs 1458 crore.

“The above project is to be constructed in 24 months, upon declaration of appointed date and operated for 15 years, post construction,” PNC Infratech said.

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The stock was up nearly 3 percent to Rs 294.95 on BSE. The stock has delivered gnarly 5 percent return in the current year so far.

Analysts are bullish on the infra company, amid heavy government capital expenditure cycle.

PNC Infratech has maintained its revenue growth guidance of 15% YoY and EBITDA margin guidance of 13-13.5% for FY23. It expects an order inflow of Rs 8000-10000 crore in FY23.

“With a cash balance of INR 4.6bn and standalone gross debt at Rs 300 crore, PNC had a net cash balance of Rs 160 crore, as of June 2022. Capex guidance for FY23 stands at Rs 100-120 crore. Given a strong order book and comfortable balance sheet, we maintain BUY, with target of R 407,” said HDFC Securities.

Axis Securities have a target of Rs 256.85 on the stock.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Sep 9, 2022 11:07 am
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