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HCC Stock Surges 11% on Major Rail Order
23 Dec
Summary
- HCC share price jumped over 11% after securing a ₹907 crore order.
- The order is for building a New Tunnel-28 for Northeast Frontier Railway.
- HCC holds a 65% stake in the joint venture for this project.
Hindustan Construction Company (HCC) share price saw a significant surge of over 11% on Monday, extending its gains for a third consecutive session. This upward trend is largely attributed to the company securing a substantial contract worth ₹907 crore from Indian Railways. The order involves building a New Tunnel-28 on the Tupul-lmphal new broad gauge railway line, a project undertaken by an HCC-VCCL joint venture, in which HCC holds a 65% stake.
The company's stock reached an intraday high of ₹20.70, a level not seen since December 5th, before paring some gains. Despite this, the positive news of the major order win fueled strong buying momentum. In addition to the railway contract, HCC also received a reaffirmation of its long-term rating to 'BB(Stable)' for its non-convertible debentures from ICRA Credit Rating.
Financially, HCC reported a standalone net profit decline of 27% year-on-year to ₹36.7 crore for the July to September quarter (Q2FY26). The company also has a total outstanding debt of ₹3,050 crore as of October 31st, while aiming to complete a rights issue worth ₹1,000-1,100 crore in the third quarter of the current financial year.
