PNC Infratech Ltd shares on Wednesday slipped 6.96 per cent to hit an intraday low of Rs 297. The stock eventually settled 3.18 per cent lower at Rs 309.05 on BSE. At this price, it has slumped 31.49 per cent in the past one month. The counter has been battered by the September 2024 quarter (Q2 FY25) earnings and the road transport ministry's restrictions.
"PNC Infra's results have been slightly disappointing from the medium-term perspective as the last two quarters were challenging for infra companies due to general elections and erratic monsoon. Also, the road transport ministry's restriction will impact investor sentiment in the short term," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
PNC Infra reported a 43.92 per cent year-on-year (YoY) drop in its second-quarter consolidated net profit. During the quarter under review, profit came at Rs 83 crore as against Rs 148 crore in the year-ago period.
The civil construction firm's revenue from operations fell 25.33 per cent to Rs 1,427 crore from Rs 1,911 crore in the year-ago period. Operating profit (EBITDA) slipped 11 per cent to Rs 356 crore in Q2 FY25 compared to Rs 400 crore in the September 2023 quarter.
PNC Infra's stock started tumbling after the Ministry of Roads (MoRTH) disqualified the construction firm and its two subsidiaries from participating in any new tender process of the ministry for a year.
MoRTH has disqualified PNC Infratech and its two subsidiaries from participating in any new tender process for one year, with effect from October 18, 2024.
Technically, a few analysts said the counter looked weak on charts. One of them recommended not to bottom-fish at current levels as the stock may slip further.
"The price has declined over 48 per cent from its record highs, with no evidence of recovery during this corrective phase. Therefore, we advise against attempting to bottom fish in this stock," said Kushal Gandhi, Technical Analyst at StoxBox.
"The stock looked weak on daily charts and it can slip towards Rs 280 level in the near term," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
As of September 2024, promoters held a 56.07 per cent stake in PNC Infratech.