Shares of Hindustan Construction Co (HCC) fell sharply in Friday’s trade amid heavy volumes. The stock plunged 20 per cent to hit its lower circuit of Rs 14.75 over a previous close of Rs 18.40. Around 126.02 lakh shares changed hands today on BSE, which was more than three times higher compared to HCC’s two-week average volume of 41.86 lakh shares. Turnover on the counter stood at Rs 19.57, commanding a market capitalisation (m-cap) of Rs 2,239.28 crore. There were 9,96,587 sell orders against buy orders of 62,093 shares.
HCC reported a 9.22 per cent decline in its December quarter (Q3 FY23) net profit at Rs 25.19 crore. It had clocked a net profit of Rs 27.75 crore in the year-ago period. The company’s total income during Q3 marginally rose to Rs 1,167.13 crore, compared with Rs 1,169.63 crore in the corresponding period last fiscal.
Also, total expenses rose marginally to Rs 1,141.36 crore in the current financial year from Rs 1,141.18 crore a year ago. As of December 2022, HCC’s order book stood at Rs 12,675 crore.
“Disappointing Q3 FY23 results have led to a sharp fall in HCC stock prices today,” said AR Ramachandran from Tips2trade.
A daily close below Rs 15.20 could lead to lower targets of Rs 14-12.50 in the near term, Ramachandran suggested. Resistance on the counter would be at 17.30, he added.
The stock was last seen trading lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 30.67. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 13.33.
HCC has a one-year beta of 1.41, indicating high volatility on the counter.
HCC is engaged in the business of providing engineering and construction services, real estate, infrastructure and urban development and management. It provides engineering and construction services for projects across sectors, such as transportation, power, water, buildings and industrial projects. Its transportation projects include the construction of roads, highways, expressways, bridges, elevated corridors, railways, metro rails, ports and marine structures.
Meanwhile, Indian equity benchmarks rose sharply in late deals, led by gains in banks, financials and consumer durables. The 30-share benchmark BSE Sensex pack and the broader NSE Nifty index jumped more than 1.50 per cent, each.
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