Storm in PNC Infratech shares, biggest rise in 6 months, shares jump 12% on bonus news – pnc infratech shares zooms 12 percent biggest single-day gains in six months on receiving bonus from nhai

PNC Infratech Shares: There was a stormy rise in the shares of PNC Infratech today on 11th December. During trading, the share price jumped by about 12 percent to Rs 347.90. This is the biggest intraday jump in the stock in the last 6 months. The surge came after news that the company had received a bonus of Rs 4.4 crore for premature completion of a road construction project in Uttar Pradesh. The company said that it completed the project of Rs 738 crore given by the National Highways Authority of India (NHAI) to make National Highway-53 four-lane, 2 months ahead of schedule. This made the company eligible to receive the bonus.

PNC Infra also has a strong order book which stood at Rs 19,909 crore at the end of the September quarter. The company’s order book at the end of FY24 stood at Rs 15,400 crore. Most of these or about 76 percent projects are related to EPC i.e. Engineering, Construction and Procurement.

However, due to an action by the Ministry of Roads (MoRTH) in the last two months, the sentiment regarding the stock had weakened significantly. The Ministry of Roads (MoRTH) had banned PNC Infratech and the Ministry of Roads (MoRTH) from participating in any tender process of the ministry for one year. MoRTH took this action because CBI had registered a case of bribery against 4 companies of the company.

Due to this, brokerage firm Sharekhan had reduced its estimates for the stock. Also, in view of the action of MoRTH, its valuation multiple was also reduced for the medium term. Sharekhan maintained its ‘Buy’ rating on the stock with a target price of Rs 400.

Around 11.25 am, shares of PNC Infratech were trading at Rs 343.40, up 10.92 per cent. However, the performance of its shares has been very weak so far this year and it has declined by about 1.83 percent since January.

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