HCC Shares Surge 13% After Securing ₹2470 Crore Tata Power Contract

Hindustan Construction Company (HCC) shares surged 13.3% after securing a ₹2,470 crore contract from Tata Power in partnership with Tata Projects Limited (TPL) as a 50:50 joint venture. The Bhivpuri Off-Stream Open-Loop Pumped Storage Project (PSP) in Karjat, Maharashtra, will have a 1,000 MW capacity, involving major civil and hydromechanical works such as dams, tunnels, powerhouses, and reservoirs. HCC, which has contributed to 26% of India’s installed hydropower capacity, also won a ₹2,191 crore metro rail project in Madhya Pradesh earlier this week.

With an order book of ₹9,773 crore as of December 2024, 26% of which comprises hydropower projects, HCC is strengthening its infrastructure presence. After a 51% stock decline from August 2024 to February 2025, HCC shares have rebounded 15.21% in March. The company has played a key role in India’s infrastructure, building 60% of the country’s nuclear power capacity, 4,036 km of roads, and 402 km of tunnels. While the stock is trading above short-term moving averages, it remains below long-term indicators. Financially, HCC’s earnings per share (EPS) and return on equity (RoE) are currently negative. However, these recent contract wins solidify HCC’s leadership in India’s infrastructure and hydropower sectors.

HCC Shares Surge 13% After Securing ₹2470 Crore Tata Power Contract

Hindustan Construction Company (HCC) recently gained attention after securing a significant ₹2,470 crore contract from Tata Power. In collaboration with Tata Projects Limited (TPL), the company will develop a large hydropower project in Karjat, Maharashtra. This announcement led to a sharp rise in HCC’s stock, which surged over 13% during Friday’s trading session.

Stock Performance

HCC, with a market capitalization of ₹4,475.6 crore, experienced a 2% increase in stock value on Thursday, reaching an intraday high of ₹25.66 from its previous close of ₹25.16. Despite this short-term gain, the stock has declined by approximately 21% over the past year. However, it has shown signs of recovery, registering a 9% rise in the last month. Following the contract announcement, HCC’s stock surged 13.21% to ₹27.85 before closing at ₹27.22, reflecting a 10.65% overall increase.

Project Details

HCC and TPL have formed a 50:50 joint venture to execute the Bhivpuri Off-Stream Open-Loop Pumped Storage Project (PSP). This 1,000 MW project includes two 333 MW units and two 167 MW units. The contract encompasses several critical civil and hydromechanical (H&M) tasks, such as:

• Constructing key structures, including the coffer dam, intake structure, head race tunnels, powerhouse, surge shaft, and tail race tunnel.
• Developing the lower reservoir with a Gravity Filtration Reservoir Dam (GFRD).
• Constructing essential infrastructure, such as roads, drainage systems, and plant foundation buildings.
• Reviewing and integrating electro-mechanical components.

Other Recent Project Wins

HCC has secured several major contracts in recent weeks. On March 17, the company, along with TPL, won a ₹2,191 crore contract from the Madhya Pradesh Metro Rail Corporation Limited (MPMRCL). This project involves constructing an 8.65 km metro corridor, including underground tunnels and stations. HCC holds a 55% stake in this joint venture, making its share worth ₹1,205 crore.

About Hindustan Construction Company

HCC is a leading infrastructure firm specializing in large-scale projects across transportation, power, marine, water, and industrial sectors. The company has played a vital role in India’s infrastructure development, contributing to:

• 26% of India’s hydropower capacity.
• 60% of India’s nuclear power generation capacity.
• 4,036 km of roads and expressways.
• 395 bridges and 360 km of complex tunnels.

Currently, HCC is involved in five hydroelectric power projects, including the 1,000 MW Tehri Pumped Storage System in Uttarakhand.

Stock and Financial Performance

From a technical perspective, HCC’s stock is currently trading above its short-term moving averages (5-day, 10-day, 20-day, and 30-day) but remains below its long-term moving averages (50-day, 100-day, 150-day, and 200-day). Other financial indicators include:

• 14-day Relative Strength Index (RSI): 56.51 (indicating balanced market sentiment).
• Price-to-Book (P/B) Ratio: 3.70.
• Earnings Per Share (EPS): Negative (-0.58).
• Return on Equity (RoE): Negative (-7.83%).

Future Outlook

HCC has a strong presence in India’s infrastructure sector, and its recent contract wins further strengthen its position. As of December 2024, the company’s order book stood at ₹9,773 crore, with hydropower projects making up a significant portion. Additionally, HCC is actively engaged in major metro projects, such as Mumbai Metro Line III and two metro packages for Chennai Metro.

Despite past volatility, HCC’s stock has demonstrated resilience, gaining 15.21% in March alone. Over the past five years, the company has delivered a remarkable 460% return. With nearly a century of expertise, HCC continues to play a crucial role in India’s infrastructure, particularly in power and transportation.

This latest contract with Tata Power further cements HCC’s reputation as a key player in India’s hydropower sector, reinforcing its leadership in the industry.