Hindustan Construction Company Share Price Surges After Major Project Win

Market Performance

Hindustan Construction Company (HCC) witnessed a 13.3% surge in its share price during early trading on March 21. The stock reached ₹27.84 per share after announcing a significant contract secured through a joint venture with Tata Projects.

Project Announcement

HCC, in collaboration with Tata Projects Limited (TPL), secured a ₹2,470 crore contract from Tata Power Company Limited. The project involves constructing the Bhivpuri Off-Stream Open-Loop Pumped Storage Project (PSP), which has a total capacity of 1,000 MW and is located in Karjat, Maharashtra. The joint venture is structured as an equal 50:50 partnership between HCC and TPL.

The project scope encompasses various civil and hydro-mechanical components, including the construction of intake structures, tunnels, pressure shafts, powerhouse elements, and additional infrastructure such as roads and drainage systems.

Additional Contract Wins

Earlier in the week, the HCC-TPL joint venture secured a ₹2,191 crore contract for an 8.65 km metro rail corridor for the Madhya Pradesh Metro Rail Corporation Limited (MPMRCL). HCC holds a 55% stake in this project, amounting to ₹1,205 crore.

Currently, HCC is actively involved in infrastructure projects, including Mumbai Metro Line III, where it is constructing 4 km of twin tunnels, four stations, and two separate Chennai Metro packages.

Order Book and Project Portfolio

As of the December quarter, HCC reported an order book valued at ₹9,773 crore. Hydro projects form the largest segment, accounting for 26% of the company's portfolio. The company has played a key role in India's infrastructure development, contributing to 26% of its hydro power capacity and 60% of its nuclear power generation infrastructure.

Stock Performance

After facing significant selling pressure between August 2024 and February 2025, during which the stock declined by nearly 51%, HCC rebounded in March with a 15.21% gain. Despite previous downturns, the stock has surged 460% over the past five years, reflecting the company's longstanding contribution to India's infrastructure development.