PNC Infra bags Rs. 1,157 crore order, stock shines

Infrastructure player PNC Infratech informed the bourses about the signing of a concession agreement between NHAI and company’s SPV PNC Challakere (Karnataka) Highways Private Ltd, which was incorporated for implementation of project of four laning of Challakere to Hariyur section of NH 150 A, in the state of Karnataka on Hybrid Annuity Mode (HAM).

This project is worth Rs. 1,157 crore and is expected to be executed in 24 months upon declaration of appointed date and operated for 15 years after completing construction.

The company also stated that till date it has bagged seven NH projects under HAM model. The cost of these project is worth Rs. 9,548 crore. This strong order book translates to book-to-bill of almost 5.2x of PNC Infratech’s FY18 revenue. This gives strong revenue visibility for PNC Infratech for the upcoming years.

This development seems to excite investors as the stock of PNC Infratech opened gap up at Rs. 158 per share, up by almost 6 per cent from its previous close of Rs. 150.2. At 10.52 hours, the stock was trading at Rs. 155.3, up by almost 3.4 per cent.