HG Infra and PNC Surge Up to 13% After Bidding for Road Projects in Maharashtra

Shares of HG Infra Engineering and PNC Infratech reached their respective record highs and soared by up to 13% on the BSE during Wednesday’s intra-day trade. This surge came after both companies emerged as L1 bidders for engineering, procurement, and construction (EPC) road projects of Maharashtra State Road Development Corporation (MSRDC).

In the current calendar year, HG Infra has seen an impressive rise of nearly 90%, while PNC Infratech has recorded a substantial 44% increase. In comparison, the S&P BSE Sensex has gained 2.5%.

HG Infra surged by 13% to reach a new high of Rs 1,643.30 after being declared as the L1 bidder by MSRDC for the construction of two expressways. The first contract involves the Nagpur-Chandrapur super communication highway in Maharashtra, spanning 28.20 KM with a bid project cost of Rs 1,991.1 crore, to be completed in 30 months. The second expressway in Maharashtra spans 31.75 KM with a bid project cost of Rs 2,151.1 crore, also to be completed in 30 months.

With an order book (OB) of Rs 12,434 crore as of FY24, 2.4 times the trailing twelve months (TTM) book to bill, HG Infra's revenue visibility is set to improve further with these two orders, ensuring the company meets its 15-20% topline growth guidance for FY25, according to ICICI Securities.

Similarly, shares of PNC Infratech surged by 12% to Rs 512.40 after emerging as the L1 bidder for two EPC road projects with a quoted amount of Rs 4,994 crore. The first contract involves the construction of an access-controlled Pune ring road in Pune district spanning 13.8 KM with a project cost of Rs 2,486 crore, to be completed over 30 months. The second road project entails the construction of an access-controlled expressway connector from Jalna to Nanded with a project cost of Rs 2,508 crore, also to be completed over 30 months.

With a healthy OB of Rs 17,380 crore, 2.3 times book to bill, PNC Infratech's revenue visibility is set to improve further with these two orders, positioning the company to capture a healthy growth pie from road ordering ahead, as per the brokerage firm.

BS