Shares of Hindustan Construction Company (HCC) gained 5% to ₹30 apiece in Tuesday’s session (September 23), with the momentum coming after the company announced that it was awarded multiple contracts for the Patna Metro Project.
The company, in its press release today, informed that it secured two contracts valued at ₹1,418.3 crore and ₹1,147.51 crore, respectively, from the Patna Metro Rail Corporation Limited (PMRCL).
The contracts involve the construction of 10.67 km of underground tunnels using Tunnel Boring Machines (TBM) and six metro stations under Phase I of the Patna Metro Rail Project.
Package PC-05 includes the design and construction of twin tunnels using a shield TBM, a cut-and-cover tunnel, an underground ramp at Mithapur, and three metro stations: Vikas Bhawan, Vidyut Bhawan, and Patna Station.
Package PC-06 comprises an underground ramp at Rukanpura and three metro stations: Rukanpura, Raja Bazar, and Patna Zoo. Both packages, the company said, also encompass architectural finishing, water supply systems, and sanitary and drainage works for stations along the Danapur–Khemnichak Corridor.
“With these new contracts, HCC continues to strengthen its position as a key player in India’s metro infrastructure development. The company is currently executing works on Mumbai Metro Line III involving 4 km of twin tunnels and four stations; Indore Metro Phase-1 involving 5.66 km of twin tunnels by TBM and seven underground stations; in addition to two packages of the Chennai Metro,” the company said in today’s release.
Apart from these, it has delivered significant portions of the Delhi Metro, Bangalore Metro, Mumbai Metro Line I, and Kolkata Metro.
HCC share price rebounds 16.5% in September after 3-month slump
The company’s shares in September reversed their 3-month bearish trend and have gained 16.5% so far. The stock, which had seen a one-way rally between March 2023 and July 2024, gaining 337%, slipped into correction territory in the following months, which lasted for six consecutive months.
Though it showed signs of recovery, it is still down 50% from its July 2024 peak of ₹57.50. Yet, the stock’s long-term performance remains impressive, as it has delivered over 500% return over the last five years.
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