Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd
"PNC Infratech Limited has been declared as the L1 (lowest) bidder in an EPC Project in Andhra Pradesh of upgradation of Canal System. The Water Resources Department, Government of Andhra Pradesh, employer for the project invited bids on 26.8.2020 (Second Call); 4 bids received in response and PNC Infratech's bid at a quoted value of Rs. 1000.72 crore declared as the first lowest bid (L1) on 20.10.2020. The Project is to be constructed in 36 months. Earlier PNC Infratech, 99% order book used to be road EPC projects. Bagging such orders apart from road projects will lead to diversification in the order book. Due to diversification in the order book, stock valuation multiple will be re-rated. Post this order, executable order book ~ Rs.16,800 cr which is close to 3.5x FY20 revenue. Company is targeting Rs.7,000 cr order for this financial year. Of that it has already received ~Rs.4,250 cr order. Looking at the current run rate, we believe the Company will be able to achieve its target of new order for this year. We are bullish on the Company considering its robust order book, good track record and strong balance sheet."
Shares of PNC Infratech Ltd was last trading in BSE at Rs.170 as compared to the previous close of Rs. 168.1. The total number of shares traded during the day was 17057 in over 844 trades.
The stock hit an intraday high of Rs. 173.35 and intraday low of 165.9. The net turnover during the day was Rs. 2898840.