Stock Under 25 in Focus After Receiving ₹2,470 Crore Order from Tata Power
Stock Under 25: Hindustan Construction Company Limited (HCC) is in the spotlight after announcing that its joint venture (JV) with Tata Projects Limited (TPL) has secured a massive ₹2,470 crore contract from Tata Power. This development has drawn significant attention to the company’s stock, which is currently trading under ₹25.
Stock Price Movement
HCC, with a market capitalization of ₹4,475.6 crore, saw its stock rise 2% in intraday trading, touching ₹25.66 compared to its previous close of ₹25.16. Over the past year, the stock has faced a decline of around 21%, while in the last month, it has provided a return of approximately 9%.
Major Order Win: ₹2,470 Crore Contract from Tata Power
According to recent filings with stock exchanges, HCC and TPL, in a 50:50 joint venture, have been awarded the contract to develop the Bhivpuri Off-Stream OpenLoop Pumped Storage Project (PSP), a 1000 MW (2×333 MW + 2×167 MW) power project in Karjat, Maharashtra.
Project Scope and Details
The project includes both civil and hydromechanical (H&M) components, involving:
- Construction of a Coffer Dam and Intake Structure with gates and screens at the Thokerwadi reservoir.
- Excavation of Head Race Tunnels, Surge Shaft, Penstock, Pressure Shaft, and Powerhouse structures.
- Development of a Tail Race Tunnel and Lower Intake Structures with gates, screens, and a new lower reservoir with a GFRD Dam.
- Building access roads, drainage systems, and other essential infrastructure for project completion.
- Review and integration of electro-mechanical works.
This project is a crucial addition to India’s renewable energy landscape, reinforcing Tata Power’s commitment to sustainable energy solutions.
Previous Updates: A Growing Order Book
HCC has consistently secured large infrastructure contracts. On March 17, 2025, the company, in partnership with TPL, won a ₹2,191 crore contract from Madhya Pradesh Metro Rail Corporation Limited (MPMRCL). This project involves constructing an 8.65 km metro corridor with underground tunnels and stations. HCC holds a 55% stake in this joint venture, valued at ₹1,205 crore.
About Hindustan Construction Company (HCC)
Hindustan Construction Company Limited specializes in engineering and executing large-scale infrastructure projects, particularly in the transportation, power, marine, water, and industrial sectors.
Key contributions by HCC include:
✔ 26% of India’s hydropower capacity
✔ Over 60% of India’s nuclear power generation capacity
✔ 4,036 lane kilometers of roads & expressways
✔ 395 bridges and 360 km of tunnels
The company is currently working on five hydroelectric power projects, including the 1000 MW Tehri Pumped Storage System in Uttarakhand.
Key Financial Ratios & Market Performance
| Metric | Value |
|---|---|
| Market Cap | ₹4,476 Cr. |
| Current Price | ₹24.6 |
| 52-Week High/Low | ₹57.5 / ₹22.0 |
| Stock P/E | – |
| Book Value | ₹1.45 |
| Dividend Yield | 0.00% |
| ROCE | 21.4% |
| ROE | – |
| Face Value | ₹1.00 |
| Promoter Holding | 16.7% |
| Price to Book Value | 17.0 |
| Debt to Equity | 8.47 |
| Pledged Percentage | 78.9% |
| Industry P/E | 19.7 |
| Graham Number | ₹7.26 |
| Intrinsic Value | ₹7.73 |
| RSI (Relative Strength Index) | 44.6 |
| EPS (Earnings Per Share) | ₹1.62 |
| No. of Equity Shares | 182 |
| PEG Ratio | – |
| 200-Day Moving Avg | ₹35.6 |
| Free Cash Flow (3 Years) | ₹873 Cr. |
| Free Cash Flow (5 Years) | ₹1,632 Cr. |
| Total Debt | ₹2,232 Cr. |
| Return on Assets | -1.17% |
| Price to Sales | 0.75 |
Stock Outlook and Investor Takeaway
HCC’s recent order win strengthens its growing infrastructure portfolio, making it an attractive stock for investors looking at long-term growth opportunities. However, the company also carries high debt and significant pledged promoter holding (78.9%), which investors should consider.
Despite the stock trading at a price-to-book value of 17.0, well above industry norms, its involvement in mega projects indicates future revenue potential.
Frequently Asked Questions (FAQs)
1. Why is Hindustan Construction Company (HCC) stock in focus?
HCC stock is in focus after securing a ₹2,470 crore order from Tata Power for the Bhivpuri Off-Stream OpenLoop Pumped Storage Project in Maharashtra.
2. What is the current stock price of HCC?
As of the latest trading session, HCC stock is priced at ₹24.6 per share.
3. How has HCC stock performed over the past year?
HCC has delivered negative returns of 21% in the last one year but has shown a 9% gain in the past month.
4. What is HCC’s involvement in India’s infrastructure projects?
HCC has contributed significantly to India’s infrastructure, including 26% of its hydropower capacity, 60% of nuclear power generation, 4,036 km of roads, and 360 km of tunnels.
5. Is HCC a good investment?
HCC has a strong order book, but investors should consider factors such as high debt (₹2,232 Cr.) and pledged promoter holdings (78.9%) before making an investment decision.
6. What other major contracts has HCC won recently?
In March 2025, HCC, along with Tata Projects, won a ₹2,191 crore contract for the Madhya Pradesh Metro Rail Corporation Limited (MPMRCL) project.
7. What are the risks of investing in HCC?
Key risks include high debt, pledged shares, and market volatility. Additionally, cash flow constraints can affect operational performance.
HCC’s recent mega project win from Tata Power positions it well for future growth, but investors must carefully evaluate its debt levels and financial health before making investment decision
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.