HCC shares jump 6% as JV bags Rs 2,191 crore contract. Details here

Shares of Hindustan Construction Company (HCC) Ltd gathered strong momentum in Monday's trade after its joint venture with in with Tata Projects Ltd (TPL) secured a Rs 2,191 crore contract for construction of a 8.65 km long corridor including underground tunnels and stations for Madhya Pradesh Metro Rail Corporation Limited (MPMRCL).

"HCC holds a 55 per cent share in the joint venture, amounting to Rs 1 205 crore. The Package IN-05R is the first and only underground segment of the 31.32 km Indore Metro Phase 1 project. The package includes the construction of 11.32 km long tunnel by TBM and seven underground stations at Indore Railway Station, Rajwada, Chota Ganpati, Bada Ganpati, Ramchandra Nagar, BSF/Kalani Nagar, and Airport, connecting a ramp east of Indore Railway Station to a ramp west of Airport Station," it stated in a BSE filing.

"Currently, HCC is engaged in Mumbai Metro Line Ill, constructing 4 km of twin tunnels and four stations, along with two Chennai Metro packages. The company has made a significant contribution to India's metro expansion plan having constructed of a material portion of Delhi Metro, Bangalore Metro, Mumbai Metro Line I and Kolkata Metro," the civil construction firm also said.

On the stock-specific front, HCC surged 5.93 per cent to hit a high of Rs 23.95. The stock was last seen trading 3.58 per cent up at Rs 23.42. At this price, it has corrected 39.20 per cent on a year-to-date (YTD) basis.

Around 5.65 shares changed hands today on BSE at the time of writing this story. The figure was lower than the two-week average volume of 40.51 lakh shares. Turnover on the counter came at Rs 1.32 crore, commanding a market capitalisation (m-cap) of Rs 4,261 crore.

The stock traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 37.39. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a negative price-to-equity (P/E) ratio of 40.43 against a price-to-book (P/B) value of 3.19. Earnings per share (EPS) came at (-)0.58 with a return on equity (RoE) of (-)7.83.

HCC is a business group developing and building responsible infrastructure through next practices. It has constructed around 26 per cent of India's Hydro Power generation and 60 per cent of India's Nuclear Power generation capacities.