PNC Infratech Ltd (NSE: PNCINFRA): The trend of sellers of the stock continues on the second day as well. On Monday, the company’s stock was locked in a lower circuit shortly after opening due to sellers.
At the same time, a sharp decline was again seen in the stock on Tuesday (October,22). The stock opened at Rs 325.00 against the closing price of Rs 366.80 in the morning. After this, the stock came below Rs 300.
PNC Infratech Ltd’s stock continues to fall heavily. Experts say ” the stock falls because the government is taking steps”.
The company’s subsidiary company was disqualified by the Ministry of Road Transport and Highways from participating in any project of the ministry.
What Next?
According to a report by a brokerage firm, it will have to rely on state highways and non-road for orders, in which it is difficult to meet the potential aggressive bidding and/or FY26/FY27 growth target. Tension will remain for the company.
The brokerage firm said that its rating has now been reduced from ‘buy’ to ‘hold’. The target of the stock has been reduced from Rs 620 to Rs 400.
The brokerage firm said in an update to the company that they also believe the current developments should not have any impact on asset monetization.
PNC Infratech Ltd informed the stock exchanges on Monday that the company and two SPVs have filed three separate writ petitions before the Delhi High Court on October 21 challenging the order of the ministry.
It has also filed three separate applications before the Delhi High Court, requesting it to pass an interim order to stay the effect, operation, and implementation of the impugned order with immediate effect till the disposal of the writ petitions filed.
Quick Fact
| Company name | PNC Infratech |
|---|---|
| Stock fall | Sellers dominating |
| Date decline started | October 21-22 |
| Stock opening price (October 22) | ₹325 |
| Closing price (previous day) | ₹366.80 |
| Stock lowest point (October 22) | Below ₹300 (₹299) |
| Reason for fall | Government steps |
| Subsidiary disqualification | Ministry of Road Transport and Highways |
| Order Impact | Reliance on state highways and non-road orders |
| Challenges | Aggressive bidding and FY26/FY27 growth target |
| Brokerage rating | Reduced from ‘buy’ to ‘hold’ |
| Possible target price | ₹400 |
| Past target price | ₹620 |
| Legal action | Three writ petitions filed |
| Court | Delhi High Court |
| Petition date | October 21 |
| Interim relief request | Stay on ministry order |
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