HCC jumps as joint venture wins a portion of Mumbai Metro III contract

Hindustan Construction Company gained 5.98% to Rs 22.15 at 13:16 IST on BSE after the company as a lead partner in the joint venture with MMS of Russia was awarded Rs 2523 crore contract by the Mumbai Metro Rail Corporation.

The announcement was made during market hours today, 5 July 2016.

Meanwhile, the S&P BSE Sensex was down 74.92 points or 0.27% at 27,203.84

On BSE, so far 26.96 lakh shares were traded in the counter as against average daily volume of 6.51 lakh shares in the past one quarter. The stock hit a high of Rs 22.75 and a low of Rs 20.90 so far during the day. The stock had hit a 52-week high of Rs 29.20 on 21 October 2015. The stock had hit a 52-week low of Rs 16.35 on 25 August 2015. The stock had outperformed the market over the past 30 days till 4 July 2016, rising 12.37% compared with Sensex's 1.62% rise. The scrip, however, underperformed the market in past one quarter, rising 6.91% as against Sensex's 9.63% gain.

The small-cap company has equity capital of Rs 77.92 crore. Face value per share is Re 1.

The contract is for construction of 4,072 meter corridor of the underground metro line including four underground stations at Chatrapati Shivaji Terminus, Kalbadevi, Girgaon and Grant Road and twin bored tunnels of total length of 3,115 meters. The project is to be completed in 55 months, HCC said. This is part of the Line 3 of the Mumbai Metro from Colaba to SEEPZ, the company said. When completed, the 33.5 kilometre long line with 26 underground and one at-grade station will be the first underground metro line in Mumbai.

Commenting on the metro rail contract, Arun Karambelkar, President & CEO- E&C, HCC said that the company is a pioneer in underground construction and that the management is confident of completing the work in an efficient and speedier manner.

HCC's net profit declined 7.3% to Rs 19.14 crore on 4.6% growth in net sales to Rs 1171.88 crore in Q4 March 2016 over Q4 March 2015.

HCC is into infrastructure development in transportation, power and water segments. HCC is developing a planned hill city named Lavasa near Pune in Maharashtra.

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