PNC Infratech Shares: PNC Infratech shares rise 8 per cent to Rs 286.30 on the BSE in Tuesday’s intra-day trade after the company was declared L1 (lowest) bidder for a highway project for the Ministry of Road Transport & Highways (MORT&H) with a bid project cost of Rs 819 crore.
The project is for the construction of four-lane highway from 49.155 km to 74.700 km (Singraur Uphar to Baranpur Kadipur Ichauli) of NH-731A with paved shoulders (i/c Ganga Bridge) in Uttar Pradesh on hybrid annuity mode (Package-III).
“The project is to be constructed in 24 months and operated for 15 years, post construction,” the company said in an exchange filing.
PNC Infratech is engaged in diversified construction activities such as construction of highways, bridges, flyovers, airport runways and allied activities.
Additionally, nine lakh shares exchanged hands on the exchanges so far, as against a one-month daily traded average of six lakh shares.
The construction company’s order book at the end of the third quarter stood at Rs 17,842 crore, which is over 2.5 times PNC Infratech’s total revenue in FY22.
Last month, CARE Ratings revised the long-term rating while reaffirming the short-term rating assigned to the bank facilities of PNC Infratech (PIL). The revision takes into account the growth in the robust scale of PIL’s operations while maintaining healthy operating profitability during FY22 (refer to the period April 1 to March 31) coupled with strong demand prospects expected in medium term led by thrust of the government on infrastructure development, the rating agency said in a rationale.
Furthermore, the rating revision also takes cognisance of increase in the operational portfolio of projects on hybrid annuity mode (HAM) forming a larger proportion of operational special purpose vehicles (SPVs) along with a few annuity/toll based self-sustainable projects which strengthen PIL’s financial flexibility.
CARE Ratings believes that PIL shall monetise certain projects over the next one year thereby freeing up growth capital for future investments with minimal reliance on external debt. As articulated by the company, these monetisation initiatives are at various stages of development.
“Aside from the robust order book, the company has also won three highway projects and one railway project with a cumulative value of Rs 4,000 crore over the past three weeks. The recent orders will, thus, boost PNC Infratech’s revenue visibility,” brokerage firm ICICIdirect wrote in a note.
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