Shares of Hindustan Construction Company tanked 6.7% to reach an intraday low of ₹ 19.60 apiece on the National Stock Exchange (NSE) after multiple bulk deals took place on the counter. At 01:28 PM on Friday, its shares were trading at ₹ 19.95, down 5.00%.
Hindustan Construction Company (HCC) is one of the oldest infrastructure companies in India and it provides engineering and construction services, real estate, infrastructure and urban development and management.
According to the data available on the NSE, Asia Opportunities IV Mauritius Limited Fund sold 4,64,83,230 shares or a 3.3 per cent stake in the company. The transaction happened at ₹ 18.58 per share, taking the transaction value to ₹ 86.36 crores.
A few other entities that bought and sold the company’s shares in bulk deals include Achintya Securities Private Limited, Hrti Private Limited, Jump Trading Financial India Private Limited, M/S. Prarthana Enterprises, and QE Securities.
HCC reported a consolidated net profit of ₹189.84 crore, recording a massive growth of 1,092.46 per cent on a year-on-year basis, as against ₹15.92 crore posted in the corresponding quarter last year. Its net sales climbed 5.94 per cent to ₹ 3,094.09 crore compared to ₹ 2,920.6 crore in the same quarter a year ago.
With a market capitalization of ₹ 3177 crores, HCC is a small-cap company. Its shares were trading at a price-to-earnings ratio (P/E) of 19.32, which is significantly higher than the industry P/E of 7.95, indicating that the stock might be overvalued as compared to its peers.
Written By Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
