Hindustan Construction Company Limited (HCC) is one of India's most established infrastructure companies, incorporated in 1926. As the flagship company of the Hindustan Construction Company Group, it operates as a multinational engineering and construction firm. Headquartered in Mumbai, HCC is involved in the engineering and construction of critical infrastructure projects across India, including dams, tunnels, bridges, hydro, nuclear, and thermal power plants, expressways and roads, marine works, water supply, irrigation systems, and industrial buildings.
Founded by industrialist Seth Walchand Hirachand in 1926, HCC secured its first major contract to construct the Bhor Ghat Tunnel on the Mumbai-Pune railway line. The company's leadership currently includes Ajit Gulabchand as Chairman and Arjun Dhawan as Executive Vice Chairman. Recent leadership changes saw Mr. Arjun Dhawan appointed as Vice Chairman & MD for a 5-year term from June 26, 2025, following the resignation of MD & CEO Jaspreet Bhullar effective June 23, 2025.
As of recent data, HCC has a market capitalization of ₹5,440 crore, which indicates a 37.4% decline over the past year. The current market capitalization stands at approximately ₹55.24 billion based on the latest available information.
The company's financial performance for FY25 has shown mixed results. HCC reported a 20% drop in sales to ₹5,603 crore and a significant 78% plunge in profit to ₹112.6 crore for FY25. For the full financial year, net profit declined by 76.45% to ₹112.63 crore in the year ended March 2025, compared to ₹478.16 crore in the previous year ended March 2024. Sales also declined by 20.03% to ₹5,603.37 crore during the same period.
Key financial highlights include:
- Revenue: ₹1,373.70 crore as of March 2025 (Q1 25)
- Net Profit: ₹90.08 crore as of March 2025 (Q1 25)
- Promoter Holding: 16.7%
- The company currently does not pay dividends to its shareholders.
HCC boasts an impressive legacy, having contributed significantly to India's infrastructure development. The company is responsible for 26% of India's hydropower capacity, over 60% of its nuclear power generation capacity, 4,036 lane km of roads and expressways, 395 bridges, and 360 km of advanced tunneling. Its extensive portfolio includes 3,800 Lane Kms of Roads, 15 Nuclear Reactors, 30 Hydro Power Projects, 46 Dams & Barrages, 337 Kms of Tunnels, and 383 Bridges.
Notable recent projects include the Dharamveer Swaraj Rakshak Chhatrapati Shambaji Mumbai Coastal Road, a high-speed corridor designed to reduce travel time between Worli and Marine Drive to under 10 minutes. Out of its total 10.58 kilometers, 9.5 km has been opened to traffic, with the remaining section expected to be completed by May 2024. The company has also been awarded the contract for the Bhivpuri Off-Stream Open-Loop Pumped Storage Project (PSP), a 1000 MW facility in Karjat, Maharashtra, comprising four units.
HCC maintains a robust order backlog of ₹11,852 crore, with an order inflow of ₹3,800 crore specifically in the nuclear sector. As of March 31, 2020, the company's order book stood at ₹16,857 crore, excluding an L1 contract worth ₹2,042 crore.
Current projects in progress include the construction of 11.32 km of tunnels and seven underground stations for the Indore Metro, connecting key locations such as the Indore Railway Station, Rajwada, and the Airport. HCC is also involved in constructing 4 km of twin tunnels and four stations for Mumbai Metro Line III, as well as two packages for the Chennai Metro.
Despite HCC's significant contributions to India's nuclear capacity, its shares have experienced a decline, down by 22% during the current year. Over the past six months, the share price has underperformed the S&P BSE 100 Index by 20.67%, and shares are currently trading 16.67% below their 200-day moving average.
Analysts have set a consensus target price of ₹35.00 for HCC shares, suggesting a potential upside of 15.28% from recent closing prices. The overall consensus recommendation for Hindustan Construction Company is "Strong Buy."
HCC operates across multiple segments, including engineering and construction, real estate, infrastructure, and others. Its core business primarily consists of providing engineering and construction (E&C) services for large-scale projects. These projects span various sectors such as power (hydro, nuclear, thermal), transportation (roads, bridges, metros, ports), water (irrigation and water supply), and industrial buildings.
HCC's comprehensive service portfolio includes transportation projects (highways, roads & bridges, railways, mass rapid transit systems, ports & harbors), power projects (hydro, nuclear, thermal), and industrial & buildings projects (manufacturing & process plants, commercial & institutional, smart cities & townships).
Investors should consider several challenges facing the company. Total revenue saw an 18% year-over-year decline in FY24, partly due to the divestment of Steiner AG's construction business. The company exhibits a low interest coverage ratio, which may indicate potential financial stress.
However, HCC's strong project execution capabilities and its established market position within India's infrastructure sector provide a solid foundation for future growth. The company's involvement in critical infrastructure projects and its expertise in complex engineering solutions position it well to benefit from India's ongoing infrastructure development initiatives.
The stock presents an opportunity for investors seeking exposure to India's infrastructure growth story. However, potential investors are advised to carefully consider the company's recent financial performance and market volatility before making investment decisions.
