Mumbai Toll-Waiver: MEP Infra, J Kumar Infra Shares In Deep Red; Construction Company Stocks React To Maharashtra Government's Decision

With the Maharashtra state election just a 'stone's throw away', the Eknath Shinde-led state government took a monumental decision by announcing a toll waiver for Light Motor Vehicles (LMV) at all 5 toll points that lead to Mumbai on October 14.

Toll Free Mumbai

This decision essentially renders all 5 checkpoints that allow entry to Mumbai 'Toll-Free' for private vehicles that fall in the category of LMV vehicles.

While this could aid many motorists, it would also result in a decline of about Rs 3.5 crore a week.

This decision was welcomed by many motorists; meanwhile, the performance of some construction and infrastructure companies, whose stakes in these toll plazas and the toll levied from them appear to have taken a hit.

Stocks On Radar

The companies in focus are MEP Infrastructure, IRB Infra Dev., J Kumar Infra, PNC Infratech, and Gayatri Highways.

MEP Infrastructure

When we look at this Mumbai-based company, the company stocks that have declined by 10.59 per cent over the past 5 trading sessions started the day on a disastrous note as the company shares hit the lower circuit, forcing a stop in trading activities on MEP Infrastructure stocks.

On the day, the company shares declined by 5.22 per cent or Rs 0.20, taking the value of the company shares to a meagre Rs 3.63 per piece.

J Kumar Infraprojects Ltd

Then we come to J Kumar Infra. The company shares started the day's trade in red, with its fortunes steadily declining further in the early hours of the day's trade on Wednesday.

The stock value of this entity declined by 0.63 per cent or Rs 4.70. This took the overall value of shares to Rs 735.50 per piece.

IRB Infrastructure Developers Ltd

The stock price of this company also saw a decline after starting the day in a relatively green territory.

The company shares that have dipped by over 2 per cent in the past five trading sessions moved further to the red as the infra stocks dipped by a further 0.19 per cent or Rs 0.11. This took the overall value of shares to Rs 58.84 per piece.

Another company in the mix is Gayatri Highways, which has lost 1.47 per cent in the past 5 trading sessions.

PNC Infratech Ltd

While the sea of red devoured some, a few were floating on the green meadow.

The shares of PNC Infratech Ltd were trading in green. On Wednesday, the company shares gained 3.71 per cent or Rs 16.55, taking the overall value to Rs 462.80.

In addition, the shares of Larsen and Toubro Ltd, after a promising start to the day, slipped into the cracks of red.

L&T shares were trading with a decline of 0.053 per cent or Rs 1.90, taking the overall value to Rs 3,550.00.