Hindustan Construction Company (HCC) is one of the largest private sector construction companies in India engaged in construction of technologically complex long gestation projects across all verticals in infrastructure space.
HCC has also forayed into the escalating Indian real-estate market by floating HCC Real Estate, a 100% subsidiary of the group. The company had transferred the development rights of its land at Vikhroli, Mumbai, and investments in the Lavasa hill-station development project, to HCC Real Estate. Lavasa is a blend of cosmopolitan architecture, imaginative planning and environment ideals, planned and based on the Principles of New Urbanism (NU).
HCC is currently in talks with the government to sort out the issues related to the cost escalation, change in scope of work and payment of the under recoveries arising out of Sealink project. It has provided for an under recoveries of Rs230 crore Bandra Worli Sealink project till 1Q FY08, which according to the management covers the expected losses on the project. HCC expects to complete the project by March 2009.
HCC has a land bank of over 1,500 acres in Mumbai, Pune, Nasik, etc., which is proposed to be used for developing over 36 mn sq ft of area. These include a 1,000 acre SEZ/township in Nasik and a 300 acre township in Pune.
KR Choksey recommends a BUY with a Target Price of Rs 175.