Stock of this small-cap construction firm rallies over 5%: Here's what is driving gains
The price bids for the proposed project were released on Monday, with PNC making the lowest bid, according to the company release.
Shares of PNC Infratech in Tuesday's trade (December 19) rallied as much as 5.56 per cent at the day's high, hitting Rs 362.4 per share on BSE.
The stock gained momentum after the engineering and construction company was declared the lowest bidder in a highway project of the Madhya Pradesh Road Development Corporation (MPRDC).
"PNC Infratech Limited has been declared the L1 (Lowest) bidder for a Highway Project namely “Construction of Western Bhopal Bypass as 4-lane with paved shoulders along with service road starts from km 424.0 of Jabalpur-Bhopal Road (NH-46) and end at km 21.0 of Bhopal-Dewas Road (SH-28) with a Design length of 40.90 km in the State of Madhya Pradesh on Hybrid Annuity Mode (HAM)” of MPRDC (Madhya Pradesh Road Development Corporation) on December 18, 2023 for the ‘Bid Project Cost’ of Rs. 1174.0 crore quoted by the Company," said the company's filing with the exchanges.
The price bids for the proposed project were released on Monday, with PNC making the lowest bid, according to the company release.
This project is to be constructed in 24 months and operated for 15 years post-construction.
On a year-to-date basis, the stock has delivered a return to the tune of 22 per cent, while over the 3 years, the gains have been 105 per cent.
PNC Infratech is a small-cap entity with a market valuation of Rs 8,805 crore. The company is an infrastructure construction, development, and management company.
The consensus recommendation from 15 analysts for PNC Infratech is a buy, with 11 of them signalling a strong buy, Trendlyne data shows. Further, the 1-year price target is placed at Rs 427, implying a 22 per cent upside.
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