PNC Infratech shares plunge another 10%, hit 52-week low; Nuvama places stock ‘under review for THIS reason

PNC Infratech shares continued to witness heavy selling pressure on Tuesday, October 21. The stock fell another 10 per cent to its 52-week low of ₹299 today, after a significant 20 per cent drop seen on Monday, October 21. The sharp declines come in response to the Ministry of Road Transport and Highways (MoRTH) disqualifying the company and its two subsidiaries from participating in new tenders for one year.

The Ministry’s decision stems from an ongoing bribery investigation led by the Central Bureau of Investigation (CBI), which involves four PNC employees accused of bribing National Highways Authority of India (NHAI) officials to gain project approvals for the Jhansi-Khajuraho highway project.

PNC Infratech on October 21 informed in an exchange filing that the company and the its two subsidiaries have filed three separate writ petitions before the High Court of Delhi challenging the order by MoRTH.

PNC Infra share price history

PNC Infra share price was trading in the red on the BSE, down 8.41 per cent at ₹335.85 at 10:07 am. The company enjoys a market capitalisation of ₹8,615.87 crore. PNC Infra stock price hit its 52-week high on May 27, 2024, at ₹574.80 as per NSE.

In a report released on October 21, 2024, Nuvama Research placed its rating of PNC Infratech under review, noting that the stock is likely to remain under pressure in the short term due to the company's inability to bid for MoRTH projects. Nuvama highlighted the potential adverse impact on PNC's future order book, as central government road projects make up a substantial portion of the company’s revenue. However, ongoing construction and maintenance projects will remain unaffected.

“We believe the stock shall be under pressure in the near term due to the adverse impact on order accretion from MoRTH,” Nuvama’s report stated​. It added that the company can still pursue opportunities from other government bodies, such as state agencies and non-MoRTH central government projects.

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