Search

Buy HCC; target of 171: Karvy

By SiliconIndia   |   Tuesday, December 29, 2009   |    5 Comments
Print Print Email Email
Bangalore: By expecting a robust growth, Karvy Stock Broking is bullish on Hindustan Construction Company (HCC) and has recommended a buy rating on the stock with a target price of Rs. 171. Karvy believes that HCC is in a sweet spot with core construction business on a growth trajectory driven by improving visibility for new order inflow and 135 percent higher infrastructure investments in Eleventh Five Year Plan. HCC is an India-based infrastructure company that operates in segments like engineering and construction, real estate and comprehensive urban development and management. The company executes projects such as transportation, power, marine projects, oil and gas pipeline constructions, irrigation and water supply, utilities and urban infrastructure. Its subsidiaries include HCC Infrastructure, HCC Real Estate and Lavasa Corporation. Karvy expects the company's order book to grow at compound annual growth rate (CAGR) of 19 percent over the next two years to Rs. 233 billion, mainly driven by sectors like hydro power and irrigation. According to Karvy, HCC's revenue would grow at CAGR of 26 percent over financial year 2010-11 and will be able to sustain margin at higher level. In addition to that, value unlocking from its foray into real estate primarily Lavasa Corporation would add significant value to HCC's shareholders, says Karvy. With the recommended target price of Rs. 171, if the stock is bought at Monday's closing price of Rs. 151.05, the percentage of gain would be 13.20 percent.
Looking For Loan? Let us Help you !!!
Product
Name
City
Phone
Email
Loan Amount
Annual Income
Preferred banks
Captcha
Type the characters you see in the picture
  Submit
SPOTLIGHT
Banks need to raise own capital
Public Sector Banks (PSBs) may raise capital themselves to meet regulatory and growth ..
90% of developing economies
Ninety per cent of developing economies, including India are falling behind or are at risk of fall..
Bharti Airtel board approves
Telecom major Bharti Airtel on Thursday said its board of directors has approved fund raising ..
Brookfield to buy RIL E-W Pipeline
Canadian investor Brookfield has acquired the loss-making East-West Pipeline Ltd from Mukesh Amba..
Previous
Next