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HomeNewsBusinessMarketsHindustan Construction Co stock on a roll, skyrockets 33% in six sessions

Hindustan Construction Co stock on a roll, skyrockets 33% in six sessions

Elara Capital expects Hindustan Construction Co to get back on its path to glory after a decade long financial slog.

June 12, 2024 / 12:22 IST
HCC shares have more than tripled investor wealth in the past one year.
     
     
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    Shares of Hindustan Construction Company have been on a roll in the past week, surging around 33 percent in six consecutive sessions. During this period, the stock has scaled multiple record highs and on June 12 as well, it extended gains and ascended to a new peak of Rs 51.18.

    At noon, shares of HCC were trading at Rs 50.30 on the NSE.

    The optimism surrounding the stock has been on hopes of a turnaround for the company under Modi 3.0, following its decade long struggle with staggering debt.

    However, the balancesheet cleanup of the company in the past decade has helped it cut down its peak debt of Rs 6,200 in FY22 to nearly half at Rs 3,400 crore in FY24.

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    According to analysts, HCC is now well-placed to capitalise on the Rs 1.5 lakh crore nuclear opportunity. Elara Capital also believes the company is on the path to reclaim its glory after its decade long financial slog. The firm estimates HCC to witness order inflows of Rs 9,000 crore.

    Furthermore, the brokerage stated that inflows may also rise by 15 percent per annum for the next two years. Elara also expects HCC's standalone revenue and EBITDA to record a CAGR of 20 percent during FY24-27E, with an earnings CAGR of 50 percent due to lower interest costs.

    Elara Capital had initiated coverage on HCC with a 'buy' call on June 11, assigning it a price target of Rs 63, leaving room for a 58 percent upside potential. The bullish views of the brokerage had tipped off an 18 percent spike in the counter in the previous session.

    Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    Moneycontrol News
    first published: Jun 12, 2024 12:22 pm

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