PNC Infratech Ltd shares picked up momentum in Monday's trade as the stock climbed 9.94 per cent to hit a high of Rs 324 even as domestic benchmarks plunged. However, it gave a major chunk of its gains as the session progressed after reporting more than a 50 per cent drop in profit.
The company's consolidated net profit plunged 56 per cent to Rs 81.39 crore in the December 2024 quarter (Q3 FY25) as against Rs 185 crore in the year-ago period. During the quarter under review, revenue from operations slipped 28.17 per cent to Rs 1,470.01 crore from Rs 2,046.64 crore in the corresponding period last year.
The scrip eventually settled 1.65 per cent higher at Rs 299.55. At this price, it has corrected 38.57 per cent in the last six months.
PNC Infra also said the Ministry of Road Transport and Highways (MoRTH) vide its order dated February 6, 2025, reduced the period of disqualification (debarment) of the company and the two SPVs from 1 year to four months from the date of original debarment order October 18, 2024, subject to completion of certain procedures with NHAI. MoRTH had barred the company and the SPVs (PNC Khajuraho Highways Pvt Ltd and PNC Bundelkhand Highways Pvt Ltd) from participating in any tender process.
"There will not be any impact on the ongoing development, construction, operations and maintenance activities of the company and its subsidiaries, including the two SPVs on account of the aforesaid orders However, the impact on other activities on account of the said disqualification, if any, are being evaluated and will be intimated accordingly," PNC Infra added.
On technical setup, support on the counter could be seen in the Rs 294-290 range.
"Support will be at Rs 290 and resistance at Rs 330. A decisive move above Rs 330 level may trigger a further upside towards Rs 355. The expected trading range will be between Rs 285 and Rs 355 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.
"PNC Infra has strong resistance at Rs 330. A daily close below the support of Rs 294 could lead to a downward target of Rs 248 in the near term," said Sebi-registered research analyst AR Ramachandran.
The stock traded higher than the 5-day and 10-day simple moving averages (SMAs) but lower than the 20-day, 30-, 50, 100, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 47.94. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As of December 2024, promoters held a 56.07 per cent stake in PNC Infratech.