Elara initiates coverage on HCC as it's 'poised to reclaim earlier glory', sees 58% upside; shares skyrocket 13%

Over the past year, HCC shares have more than doubled investors' wealth, jumping 109 percent in trade.

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26 Aug, 2025 12:21

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Domestic brokerage Elara Securities initiated coverage on Hindustan Construction Company (HCC) with a buy rating, believing the company is poised to reclaim its earlier glory.
Elara issued a target price of Rs 63 per share on HCC, seeing a 58 percent upside from current levels.

At 10 am, shares of HCC were quoting Rs 44.95 on the NSE, higher by 13 percent compared to the previous close.

The brokerage said HCC's ten-year slog improved its financial health, as peak standalone debt of Rs 6,200 crore in FY22 fell by almost half to Rs 3,400 crore in FY24.

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Elara expects HCC's standalone revenue and EBITDA to record a CAGR of 20 percent during FY24-27E, with an earnings CAGR at 50 percent due to lower interest costs.

HCC is well positioned to capture on the Rs 1.5 lakh crore nuclear opportunity. According to Elara, the firm could see order inflows of Rs 9,000 crore compared to its guidance of Rs 10,000 crore. Also, inflows are likely to increase by 15 percent per annum for the next two years.

On April 13, Hindustan Construction Company said its panel has approved raising Rs 350 crore through a rights issue. The rights issue committee approved the allotment of 16.6 crore equity shares at a price of Rs 21 each, the civil construction firm said in a filing to the BSE.

Over the past year, HCC shares have more than doubled investors' wealth, jumping 109 percent in trade as compared to a 25 percent rise in the Nifty 50 index during the same time period.

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