NHAI Increases Contractor Payment to ₹398 Crore! Civil Contractor Sees Growth

PNC Infratech's subsidiary, PNC Kanpur Highways Limited (PNCKHL), recently received a net payment of Rs. 390.62 crore under the government's 'Vivad Se Vishwas II (Contractual Disputes)' Scheme, resolving a dispute with the National Highways Authority of India (NHAI).

The settlement stems from PNCKHL's initial claim of Rs. 395 crore, with NHAI initially offering Rs. 391 crore. A final agreement of Rs. 398.6 crore was reached in May 2024.

In another development, PNC Infratech was awarded a bonus of Rs. 56.38 crore by the Maharashtra State Road Development Corporation (MSRDC) for completing Package 4 of the Nagpur-Mumbai Super Communication Expressway ahead of schedule.

The company secured two new projects under MSRDC's EPC program on May 21, 2024, worth a combined Rs. 4,994 crore, involving the construction of a 13.8 km stretch of the Pune Ring Road (Package PRR E2) and a 28.895 km section of the Expressway Connector in Parbhani district.

PNC Infratech's shares surged by 7.24% to an intraday high of Rs. 555.50 per share, reflecting positive investor sentiment.

With a market cap exceeding Rs. 14,000 crore, PNC Infratech is a key player in infrastructure projects, boasting a robust order book of Rs. 20,400 crore as of March 31, 2023.

The company's shares have a PE ratio of 20x, an ROE of 16.2%, and an ROCE of 15%. With multibagger returns of over 100% in 3 years, investors are advised to monitor this Mid-Cap civil construction stock closely.

Disclaimer: This article serves for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making investment decisions.

News by Rahul Yelligetti