Rajen Shah, CIO of Angel Broking told CNBC-TV18, "Tough times make good companies stronger and that is what Hindustan Construction Company (HCC) has emerged now. The stock was at Rs 10, moved up to Rs 50, now it is back at about Rs 35 levels. The huge infrastructure development over the next many years should see construction companies doing very well and one of the companies which we like is HCC.”
He further added, “The company has Rs 15,000 crore of order book position available at a marketcap of Rs 2,500 crore. The company likely to go for an initial public offering (IPO) of Lavasa plus it is planning to raise about Rs 750 crore via qualified institutional placement (QIP). This all should reduce the debt of the company significantly.”
“I think at Rs 35-36 there is not anything much to lose from here and we should see a decent upside. Remember, this stock was quoting at Rs 135 adjusted for bonus few years back and now we are getting it at 75 percent below that peak which it touched. So I think there is not much to lose in this company and if you are betting on this government, if you are expecting this government to deliver which I am surely betting on, this company should do extremely well,” he added.
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