Shares of Hindustan Construction Co┬а(HCC) plunged sharply on Wednesday, pausing their two-day winning run amid weakness in the domestic equity benchmarks. The stock crashed 15.26 per cent to hit an intraday low of Rs 18.60 over its previous close of Rs 21.95. The stock eventually settled 13.44 per cent lower at Rs 19.
A total of 1.19 crore shares changed hands today on BSE with a turnover of Rs 24.07 crore. The company’s market capitalisation or m-cap stood at Rs 2,874.75 crore.
At today’s closing level of Rs 19, HCC has fallen 16.30 per cent compared to its one-year high of Rs 22.70, hit in the previous session. That said, the stock has gained 80.27 per cent from its 52-week low of Rs 10.54, hit in June this year.
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The stock has declined 12.44 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has moved 11.76 per cent higher.
Further, credit rating agency ICRA has given [ICRA] B (Stable) rating for HCC’s non-convertible debentures amounting to Rs 823.9 crore. As per ICRA, [ICRA] B rating (with outlook stable) is assigned to those instruments considered to have a high risk of default regarding the timely servicing of financial obligations.
Analysts largely remained mixed on the counter. They said traders could play the stock, placing stop loss at Rs 14.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “HCC has witnessed a stellar rally in the last one month and has recently seen a breakout from Rs 19 odd levels. At present, the stock has corrected from a high of Rs 22.70 and is hovering near the breakout zone. The support for the counter is placed near Rs 18-18.50, followed by Rs 17. While on the higher end, any breach above the mentioned swing high could only trigger the next leg of the rally.”
Manoj Dalmia, Founder and Director, Proficient Equities, said, “Promoter share holding in the company decreased by 6.60 per cent in the most recent quarter. Investors can avoid buying this stock as these are some red signals.”
Ravi Singhal, CEO, GCL, said, “HCC has given strong break out above Rs 17 after that it is in bull run. Over a few months, it can touch Rs 44 levels. Keep stop loss of Rs 14.”
A R Ramachandran from Tips2trades, said, “Currently HCC stock faces a negative divergence on the Daily charts. Investors should exit buy positions and wait for a dip till Rs 14.5-15 to initiate fresh buy positions.”
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Meanwhile, Indian equity benchmarks slumped today, dragged by selling pressure in bank, financial, automobile, metal, consumer and energy stocks. The 30-share BSE Sensex tanked 635 points or 1.03 per cent to close at 61,067, while the broader NSE Nifty moved 186 points or 1.01 per cent down to finish at 18,199.
