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Shares of civil construction company PNC Infratech Ltd. rose as much as 1.8 percent on Monday after the company achieved financial closure for two Hybrid Annuity (HAM) Projects of the National Highways Authority of India (NHAI)

The infrastructure major submitted duly executed financing documents to NHAI for the Kanpur- Lucknow Expressway package I and II. Both these projects are owned by PNC Infratech’s subsidiaries Kanpur Lucknow Expressway Pvt. Ltd. and Awadh Expressway Pvt. Ltd.

Shares of PNC Infratech are trading off the day's high at Rs 269.85 up 0.2 percent while the broader benchmarks are trading with losses of over one percent each.

The stock has fallen over 31 percent from its 52-week-high of Rs 395.90 (a level hit in October 2021) and has dropped over 25 percent in the past year compared to a 2.5 percent fall in the benchmark Nifty 50 index.

Despite its weak performance, brokerages are bullish on the company's prospects. HDFC Securities in August set a target price of Rs 407 on the stock, indicating a potential upside of 48 percent. The brokerage house maintained a buy recommendation on the stock given its strong order book and a comfortable balance sheet.

PNC Infratech had bagged Package I and Package II - for the construction of the Kanpur-Lucknow Expressway in Uttar Pradesh in February. These two projects are under the Bharatmala Pariyojana and their total value stands at over Rs 2,665.96 crore.

The Lucknow-Kanpur Expressway will be a 62-km long, 6-lane expressway in Uttar Pradesh. The project has a completion deadline of December 2025. With the completion of the expressway, the travel time from Lucknow to Kanpur will be reduced from two hours to 50 minutes.

(Edited by : Rukmani Krishna)

First Published:Oct 10, 2022 12:36 PM IST