PNC Infratech (NSE:PNCI) Limited, a leading player in India’s infrastructure sector, has encountered a legal roadblock in a major INR 2,039.61 crore road development project awarded under Maharashtra’s NAINA (Navi Mumbai Airport Influence Notified Area) initiative.
The project, awarded to the PNC Infratech – Akshya Infra Projects JV by the City & Industrial Development Corporation of Maharashtra Ltd (CIDCO) through a Letter of Acceptance (LOA) dated October 10, 2024, involved the integrated development of roads over 20 meters wide, construction of flyovers, bridges, underpasses, and allied electrical works across TPS-8, TPS-9, and TPS-12.
Following the LOA, CIDCO issued a formal Work Order on October 15, 2024, signaling the start of one of the region’s most ambitious urban infrastructure projects. However, the project soon ran into turbulence. One of the unsuccessful bidders, whose proposal was rejected during CIDCO’s technical evaluation, challenged the outcome in the Bombay High Court.
In a significant turn of events, the High Court on May 6, 2025, quashed the Work Order, ruling in favor of the petitioner and setting aside the award issued to the PNC-Akshya JV. This development effectively stalls the execution of the contract, potentially delaying project timelines and casting uncertainty over a major business opportunity for the company.
In response, PNC Infratech filed a Special Leave Petition (SLP) with the Supreme Court on May 7, 2025, seeking an interim stay on the High Court’s order and to reinstate its right to proceed with the project. The infrastructure firm remains hopeful of a favorable verdict from the apex court to resume work on the project.
Should Investors Worry?
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While this development could impact near-term revenue visibility, long-term investors may want to assess the stock’s valuation before making decisions. According to InvestingPro’s Fair Value model, PNC Infratech’s intrinsic value is pegged at INR 256.1, implying an 8.6% downside from its current market price of INR 280.2.
InvestingPro’s Fair Value feature is a powerful tool that uses multiple valuation models to arrive at realistic, data-driven stock estimates — helping investors cut through market noise and stay focused on fundamentals. With discounts of up to 45% now available, it’s an ideal time to subscribe and make better-informed decisions.
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