HCC share price jumps over 9% to hit 52-week high on sale of Swiss arm for ₹928 crore
- HCC share price touches a 52-week high after the company's arm enters into a share purchase agreement with Demathieu Bard for divestment worth ₹928 crore.
Hindustan Construction Company share price (HCC share price) surged over 9% to hit 52-week high after Steinier AG, Switzerland, a material subsidiary of the company, entered into a share purchase agreement with Demathieu Bard for the divestment of its entire equity interest in Steiner Construction SA, Switzerland, a step-down material subsidiary of the company for ₹928 crore.
HCC share price today opened at intraday low of ₹30.55 apiece on BSE. HCC share price hit intraday high at ₹32.42. According to Ruchit Jain, Lead Research Analyst at 5paisa, HCC has been forming higher top higher bottom structure. The short term trend is positive with supports around ₹28 and ₹26. HCC stock price has increased by 57% so far this year.
Further, as a result, upon completion of the sale or disposal, Steiner Construction SA will no longer be a subsidiary of Steiner AG, Switzerland, and the company, said the exchange filing.
The agreement will be completed by the end of December or the start of the following year.
Demathieu Bard is one of the top real estate and construction firms in France. The company engages in the construction of roads, engineering buildings, energy delivery, mobility facilitation, and living space creation. According to the company's exchange filing, the buyer is not associated with the promoter, promoter group, or group companies.
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According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, HCC has been one of the outperformers and has given spectacular returns in the last couple of months. The last couple of weeks, prices were in the consolidation phase, but today we are seeing a range breakout backed by volumes. We expect this rally to continue, with prices likely to head towards ₹36 with ₹30 acting as the buying zone.
For the quarter ended September, HCC reported a 97.95% decrease in consolidated net profit to ₹6.33 crore. As per filing, the company reported a consolidated net profit of ₹310.29 crore for the same period last year.
The company's consolidated income for the July–September period decreased to ₹1,870.70 crore from ₹2,273.39 crore in the same period last year.
“The company is now focusing on growth through new order acquisitions. It has bid for projects worth ₹6,000 crore, which are under evaluation. Another ₹8,000 crore worth of bids shall be submitted in the coming quarter. Furthermore, a bid pipeline of ₹15,000 crore has been identified for future growth. During the quarter, the order backlog increased by- ₹900 crore through awards of variations in existing jobs,” the company said in a filing dated November 9.
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