The first week of 2023 closed on a weak note, with bellwether indices Sensex and Nifty shedding 1.4 per cent over the last five trading sessions. Indian equities underperformed global markets such as the US and China this week, even as experts have allayed concerns over the new Covid-19 strain and its potential impact on India.

However, some stocks continued to shine even in an otherwise sober market. Interestingly, a few infrastructure-related stocks were in flavour this week, possibly on expectations of more push for the sector in the Union Budget which will be unveiled by the finance minister on February 1.

NCC

Topping the winners’ list this week is the stock of construction company National Construction Company (NCC), gaining 12 per cent since December 30. The four-decade-old construction company has leapfrogged into an infrastructure company with several BOT projects in its fold, in addition to construction real estate business. Five new order wins totalling to ₹3,601 crore in December alone, from State Government Agencies, has helped the rally in the stock.

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The new orders will be executed over the next three years. Of the total orders, two orders worth ₹1,871 crore pertains to the water division, two worth ₹993 crore were for the electrical division and one worth ₹738 crore was for the irrigation division. In September 2022, the company posted revenue growth of over 31 per cent to ₹3,373 crore, while operating profit grew 17 per cent to ₹310 crore. For the first half, the company reported revenue growth of 44 per cent to ₹6,694 crore, and net profit for this period grew 56 per cent to ₹275 crore. The stock currently trades 13.8 times its trailing twelve-month earnings and about 1 times its book value.

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PFC

The stock of state-owned infrastructure finance company Power Finance Corporation ranked second. The stock has gained about 11 per cent over the week. The rally is possibly on the back of stake sale rumours in Power Trading Corporation, wherein the company holds about a 4 per cent stake. In the September quarter, the company posted net profit growth of 4 per cent to ₹5,229 crore on a flat revenue of ₹19,336 crore. The stock currently trades at 0.5 times its book value of ₹290 a share.

PNC

The other gainer this week was the stock of Infrastructure, construction company PNC Infratech, gaining 10 per. The company which is into the construction of highways, bridges, flyovers etc., besides airport runways and power transmission lines, announced an appointed date for a project which has been won by its subsidiary, Akkalkot Highways, from NHAI.

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The project is for the construction of a six-lane with access-controlled Greenfield Highway from Badadal to Maradgi S Andola in Karnataka on Hybrid Annuity Model under Bharatmala Pariyojna. It will have a construction period of 912 days and a concession period of 17.5 years from the appointed date of December 28. The company reported flattish revenue and net profit of ₹1,795 crore and ₹132 crore respectively in the September 2022 quarter. The stock currently trades 11.6 times its trailing twelve-month earnings and about two times its book value.

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