PNC Infra, IRB Infra, Ashoka Buildcon, KNR share prices down up to 16% in March as order inflows remain in a slow lane
PNC Infratech share price after scaling 52 week highs of ₹472 in the first week of March. is down more than 14%. Ashoka Buildcon , Dilip Buildcon, IRB Infrastructure , KNR Constructions too have seen their share price decline 9-16% during the month of March till date.
It is the order in flows that remains a key concern even though execution has remained decent in past few months. The awarding of road projects by National Highway Authority of India (NHAI) has been in the slow lane during past few months. The analysts say that order inflows usually catch pace by end of the year and specially in March.
Nevertheless due to general elections tis year ordering activity has ben slow this year. Overall, year-to-date in FY24 awarding by NHAI and ministry of Road transport and highways (MoRTH) stands at around 4,872 km versus 7,497 km during April-2022 to February-2023, as per Nuvama Institutional Equities data. MoRTH has been leading the majority of the awarding effort this year as per Nuvama while the NHAI has only contributed about 30% of the YTD awarding (1,402km).
Also Read- Tata chemicals share price down 8%: Tata group stocks volatile: Should you Sell or Hold the stocks? Notably the MoRTH and NHAI's total awarding in FY23 stood at 12,375 km in and 12,731 km in FY22. Of this the NHAI had granted orders worth around 6,310 km in FY23 and 6,306 km in FY22. Clearly FY24 is lagging far behind.
It is the order inflows that increase the revenues and earnings outlook. With lower ordering in FY24, the earnings outlook for FY25 has not strengthened. Since most of ordering will happen post elections and largely in second half of FY25 even FY26 outlook may not see significant improvement compared to estimates, said an analyst at
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