HCC rose 13.59% to Rs 37.20 at 9:55 IST on BSE, with the stock extending gains registered during the previous trading session triggered by fresh initiatives by the government to revive the construction sector.
Meanwhile, the BSE Sensex was up 31.94 points, or 0.11%, to 28,455.42.
On BSE, so far 63.72 lakh shares were traded in the counter, compared with average daily volume of 13.38 lakh shares in the past one quarter. The stock hit a high of Rs 37.90 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 34.05 so far during the day. The stock hit a 52-week low of Rs 16.60 on 12 February 2016. The stock had outperformed the market over the past 30 days till 1 September 2016, rising 51.62% compared with 2.62% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 76.08% as against Sensex's 5.89% rise.
The mid-cap company has equity capital of Rs 77.92 crore. Face value per share is Re 1.
Shares of HCC rose 19.09% to settle at Rs 32.75 yesterday, 1 September 2016, after the company announced after market hours on Wednesday, 31 August 2016, that the Union Cabinet's latest decision requiring the government agencies to pay 75% of arbitral awards will result in HCC's debt being reduced by half. The stock has risen 35.27% in two trading sessions from its close of Rs 27.50 on Wednesday, 31 August 2016.
HCC has arbitration awards for over Rs 3200 crore and with the latest cabinet decision, the company will get 75% of this amount immediately. HCCL also has claims worth around Rs 5,000 crore are in arbitration process. The cabinet decision will further help HCC to secure these awards within a duration of 12 months.
HCC's chairman and managing director said that the company will immediately be able to reduce its debt by almost half. The debt burden will reduce further within the next 12 to 24 months. With this, HCC will be able to participate in country's infrastructure development in a much bigger way. HCC currently has standalone debt of Rs 4900 crore.
The Cabinet Committee on Economic Affairs (CCEA) on 31 August 2016 approved a series of initiatives to revive the construction sector. As per the new initiatives, CCEA allowed contractors to move to the new speedier arbitration process, approved release of 75% of the amount in dispute against margin free bank guarantee and provided for a conciliation board comprising of independent subject experts in order to ensure speedy disposal of pending or new cases.
Net profit of HCC rose 17.5% to Rs 10.88 crore on 1.7% rise in net sales to Rs 899.32 crore in Q1 June 2016 over Q1 June 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.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
