Hindustan Construction Company Ltd Share Price – NSE /  BSE

Infrastructure Developers & Operators, Small Cap

Indo Count Industries Ltd, Intellect Design Arena Ltd, Network 18 Media & Investments Ltd and Glenmark Life Sciences Ltd are among the other losers in the BSE's 'A' group today, 24 December 2024.

Hindustan Construction Company Ltd tumbled 5.18% to Rs 38.81 at 14:47 IST.The stock was the biggest loser in the BSE's 'A' group.On the BSE, 19.47 lakh shares were traded on the counter so far as against the average daily volumes of 22.72 lakh shares in the past one month.

Indo Count Industries Ltd crashed 4.08% to Rs 331.75. The stock was the second biggest loser in 'A' group.On the BSE, 32357 shares were traded on the counter so far as against the average daily volumes of 47739 shares in the past one month.

Intellect Design Arena Ltd lost 4.04% to Rs 923.7. The stock was the third biggest loser in 'A' group.On the BSE, 2.1 lakh shares were traded on the counter so far as against the average daily volumes of 45095 shares in the past one month.

Network 18 Media & Investments Ltd plummeted 3.66% to Rs 73. The stock was the fourth biggest loser in 'A' group.On the BSE, 1.01 lakh shares were traded on the counter so far as against the average daily volumes of 3.45 lakh shares in the past one month.

Glenmark Life Sciences Ltd fell 3.53% to Rs 958.45. The stock was the fifth biggest loser in 'A' group.On the BSE, 1881 shares were traded on the counter so far as against the average daily volumes of 7763 shares in the past one month.

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Hindustan Construction Company has completed a claims settlement with a major client for Rs.180 crore, resulting in the reduction of client advances amounting to around Rs. 130 crore (implying a reduction of annual financing charges of Rs. 15 crore), with the balance Rs. 50 crore being received as cash consideration, thereby boosting liquidity.

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The QIP, which opened on 16 December 2024, saw a robust response and was fully subscribed within a few hours of its opening.

HCC has raised Rs 600 crore by issuing shares at an issue price of Rs 43.01 (including a premium of Rs 42.01 per share). The offering attracted a diverse pool of top-tier institutional investors with long-term outlooks including global and domestic investors like SBI General Insurance, Citi Bank, BNP Paribas Sriram Mutual Fund, Authum, Samsung Family Office, DE Shaw etc.

This is the second fundraising for HCC after its successful rights issue of Rs 350 crore in April 2024, which was over-subscribed by 2.5 times.

The QIP proceeds shall be primarily utilized for business growth, augmenting working capital and toward deleveraging.

HCC is the flagship company of Hindustan Construction Company Group (HCC Group) and is involved in engineering and construction of infrastructure projects such as dams, tunnels, bridges, hydro, nuclear and thermal power plants, expressways and roads, marine works, water supply, irrigation systems and industrial buildings across the country.

The scrip fell 1.68% to currently trade at Rs 43.35 on the BSE.

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ICRA stated that the rating reaffirmation factors in Hindustan Construction Company’s (HCC) adequate order book position of Rs 9,773 crore (order book to construction income ratio of 2.1 times) as on 30 September 2024, providing near-term revenue visibility and diversified order book across segments, geographies and clientele.

The rating derives comfort from the improvement in operating margin from the core engineering, procurement and construction (EPC) business in FY2024 and H1 FY2025.

Improved operating leverage, presence of price escalation clauses in most of the contracts, along with lower sub-contracting dependence supported margin expansion in FY2024 and H1 FY2025.

ICRA expects the company to ramp-up its gross billing from the core EPC business with inflow of new orders, while maintaining adequate operating margins.

ICRA has factored in the likely support to the liquidity profile from the planned fund infusion through Qualified Institutional Placement (QIP), which is expected to be completed by the end of December 2024.

The rating favourably notes HCC’s long track record of operations of over nine decades, supported by an experienced management and demonstrated capabilities in executing relatively complex tunnelling and hydro projects.

The rating, however, is constrained by HCC’s high TOL/TNW, which stood at 5.1 times as on 30 September 2024 (FY2024: 7.2 times). The same is likely to improve over the medium term but will remain elevated in the near term.

HCC’s receivables and work in progress remain elevated due to ongoing arbitration/claims pending with the clients. It has been able to manage the working capital requirements, partly by availing an extended credit period from suppliers/sub-contractors and mobilisation advances from clients.

Going forward, any material deterioration in the working capital intensity from the anticipated levels can impact its liquidity position and will be a key rating sensitivity.

HCC is the flagship company of Hindustan Construction Company Group (HCC Group) and is involved in engineering and construction of infrastructure projects such as dams, tunnels, bridges, hydro, nuclear and thermal power plants, expressways and roads, marine works, water supply, irrigation systems and industrial buildings across the country.

The scrip declined 1.34% to currently trade at Rs 44.04 on the BSE.

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