Bull of the day: Hindustan Construction

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Hindustan Construction Company (HCC) surged 3.80% or Rs 4.90 to close at Rs 133.70, ahead of the weekend. There were pending buy orders of 3,685 shares, with no sellers available. It has touched an intraday high of Rs 139.50 and an intraday low of Rs 126.80.

Why the run up? The company has recorded a stellar performance in the quarter ended 30 June, 2010.  Also its board members approved bonus issue of one equity share for every one share held.

In the first quarter of the current fiscal, it posted a standalone net profit at Rs 28.3 crore as against Rs 18.2 crore, a growth of 55.5% on a year-on-year basis (YoY).

During the period, standalone net sales rose 15.55% to Rs 1,008.2 crore from Rs 872.5 crore (YoY).

Another piece of information that acted in favour of the company is its announcement to launch initial public offer (IPO) of Lavasa worth Rs 2,000 crore. The company said Lavasa unit has reported net profit at Rs 49 crore and net sales at Rs 181 crore. The company holds 65% stake in Lavasa. 

 Also see the peer comparison (Q1FY11):

Company	Last Price (Rs)	Market Cap (Rs in Cr)	Sales Turnover (Rs in Cr)	PAT (Rs in Cr)
Jaiprakash Asso	118.1	25091.94	5979.46	897.01
GMR Infra	56.85	20848.91	169.36	13.45
Unitech	81.15	20432.42	1852.25	739.66
HCC	133.85	4059.09	3629.21	81.44

 

 

 

 

 

Must Read : HCC April-June net profit up 55.5% at Rs 28.3cr