"HCC has reported a 39% y-o-y growth in the top line in Q1FY07 while PBT has increased by 62% y-o-y. PAT but before extraordinary income grew by 45% y-o-y. Q2 is traditionally considered as a lean season for HCC due to the monsoons. HCC has lost 4 running projects in Q2FY07 due to heavy rains and floods. The order book of HCC has grown at a CAGR of 20 % since 2002 and currently stands at over Rs 9000 crore, which is almost five times its FY 2004-05 turnover. Lavasa Corporation is under development and the company expects the first phase to be completed by 2008. The total value of this project is worth Rs 20000 crore. They are also developing lands Panvel and Thane. At a CMP of Rs 139, the stock is trading at 20.4x FY08P and 26.9x FY07P earnings. We recommend to Accumulate."
