The infra space remain in strong up trend with Nifty infra index placed at an all-time high and forming higher high and higher low in all time frame
The share price of PNC Infratech has registered a resolute breakout above the rising trend line joining the previous major highs of December 2017 (Rs. 228) and February 2021 (Rs. 289) signalling acceleration of up move and offers fresh entry opportunity
The stock has recently retraced its 13 week's decline from Rs. 289-218 in just seven weeks. A faster retracement in almost half the time interval highlights positive structure
PNC Infratech has established itself as a strong executor in roads, water infra and airport runway segments. Additionally, superior execution capabilities via ownership of modern equipment and in-house teams enables it to deliver projects on-time. PNC has executed 70 major infrastructure projects till date. It reported 19.8% revenue CAGR in FY16-21. Operating margin was in the range of 13-15%. The company has exhibited proficient execution and robust return ratios (RoCE: ~20%)
PNC remains one of our preferred pick given its robust order book, healthy return ratios and lean balance sheet. Irrespective of its asset monetisation plan fructification (it is looking to monetise its BOT/HAM assets and expects some development by year end), sufficient internal accruals from current order book and current cash is enough for equity infusion
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Shares of PNC Infratech Limited was last trading in BSE at Rs. 351 as compared to the previous close of Rs. 338.25. The total number of shares traded during the day was 76415 in over 2822 trades.
The stock hit an intraday high of Rs. 353 and intraday low of 341.1. The net turnover during the day was Rs. 26529873.