Hindustan Construction Company – A Sleeping Gaint

HCC is an integrated group spanning Construction, Real Estate and Infrastructure development. The HCC Group of companies comprises of HCC Construction, HCC Infrastructure, HCC Real Estate (HREL) and Lavasa Corporation. The group specializes in technically complex, new-age construction in infrastructure projects, as well as EPC, BOT, Integrated projects and townships. HCC has made an unmatched contribution to civil engineering landmarks, having executed over 321 Bridges, 43 Dams and Barrages, 15 Hydel Power Plants and 11 Nuclear Reactors, 160 kms of Tunneling and 2,227 kms of Roads and Expressways. Its Wholly Owned Real Estate Subsidiary, HREL, is developing LEED certified, state-of-the-art, 1.8 million sq ft multi-tenanted IT Park located at Vikhroli, Mumbai’s emerging IT hub. HREL is also developing free India’s largest Hill Station, Lavasa, spread across a picturesque landscape of 12,500 acres, located 45 minutes away from Pune.


HCC won the coveted Golden Peacock Award for Excellence in Corporate Governance for the year 2007

HCC has been executing some of the most exciting and challenging projectsin Indian history. The major engineering landmarks include the world’s longest barrage at Farakka in West Bengal, India’s first underground metro at Kolkata and the second one in New Delhi, the Mumbai-Pune Expressway – India’s first six-lane expressway, the unique double curvature arch dam at Idukki in Kerala and one of Asia’s largest breakwaters at Ennore Port in Tamil Nadu.

Huge Order Book
The order book of HCC has grown at a CAGR of 20 % since 2002 and currently stands at over Rs. 16000 crores in 2008-2009, which is much much higher then its previour years turn over.
HCC Order Book up 35% in Q3 2008-09

Major Orders:
January 2009
Hindustan Construction Company Ltd (HCC) has informed BSE that the Company has bagged the prestigious order for Package MC3 of 1200 MW Punatsangchhu-I Hydro Electric Project in Bhutan from Punatsangchhu-I Hydro Electric Project Authority. The value of the contract awarded is Rs 688.06 crore and the project will be completed in 66 months.
HCC - Halcrow Consortium comprising of Hindustan Construction Company Ltd (HCC) and Halcrow Group Ltd. U.K. (Halcrow) has bagged the prestigious and challenging 330 MW
HCC bags Rs 2726.49 cr Kishanganga hydel project in Jammu & Kashmir"
Kishanganga Hydro-Electric Project from the National Hydroelectric Power Corporation Ltd.
Hindustan Construction Company Ltd has a Press Release dated January 21, 2009 titled "Lavasa to host SpaceWorld, Asia's first space edutainment centre at Rs 400 crore investment"
HCC bags Rs 1415 crore BOT project of NHAI

Feb 2009
HCC awarded Rs 296.90 cr Kashang HEPP in Himachal Pradesh



Investment in Lavasa
Hindustan Construction Company Ltd has invested Rs 81.25 Crore in Lavasa Corporation Ltd (LAVASA), a subsidiary of the HCC (Hindustan Construction Company Ltd) in the form of convertible warrants. Based on the above investment, the equity valuation of LAVASA gets reconfirmed at Rs 10,000 Crore. (Axis Bank Ltd, Bank of India and Allahabad Bank had also invested Rs 250 Crore, Rs 150 Crore and Rs 50 Crore respectively) at the same valuation.

My Rational
Friends, I am putting a buy call on HCC,… The company has strong overall fundamentals,,,Just Accumulate this Sleeping Gaint…HCC currently has a large order book which provides next few years earnings visibility. The infrastructure sector companies in India are expected to suffer because of the slowdown in the near term and HCC is no exception. But this might be one of the best times to accumulate in small quantities shares like HCC, which are sure to be multibaggers in the long run…
The Other factor we should not ignore is the Indo-US nuclear deal. It is also expected to benefit HCC in the long run. The company is already into Nuclear projects and this deal will help it bag more projects in the future.