IRB Infra, PNC Infrastructure gain up to 13%; here’s why

Shares of IRB Infra and PNC Infrastructure gained in Monday’s trade by up to 13 per cent even as the headline indices continued to rejoice the likely BIP win in the Lok Sabha elections 2024 based on the exit poll outcome.

At the last count, IRB Infra traded higher by 10 per cent at Rs 72.65 after scaling the day’s high price of Rs 74.6 apiece on the BSE, meanwhile PNC Infra traded with over 4 per cent gains at Rs 541.45, while at day’s high it notched levels of Rs 555.5 per share.

The buying momentum in the stock is triggered after the National Highway Authority of India (NHAI) has hiked toll across 1100 toll plazas on the expressways in the country by as much as 3-5 per cent. The move is considered to be positive for both the stocks.

The decision to this effect is implemented now due to the code of conduct instead of April 1.

Of the total revenue, IRB Infra's 30 per cent revenue is accounted for by the BOT or build, operate and transfer and TOT or toll, operate and transfer. The company currently is reported to have as many as 17 toll projetcs. In the previous fiscal year ended 2024, the company added 3 new toll projects in April month. Also, tbe company is continually seeing a rise in toll collection, with January-March collection estimated to be around 70 per cent of the company's revenues.

Also, on the sidelines, PNC Infra has received a one-time settlement amount of Rs 391 crore from NHAI.

PNC Infra shares recorded their 52-week high price of Rs 574.8 last week, while the stock’s 1-year return is at 72 per cent.

Meanwhile, IRB Infra also scaled to its new 52-week high price of Rs 76.6 in the past week. The stock’s 1-year return is at over 154 per cent.