The construction and Engineering company HCC said it has in joint venture with KEC International, won a Rs 1,147 crore order from Chennai Metro Rail. The stake of HCC in the JV is 51 per cent (Rs 585 crore).
Shares of HCC jumped 8 per cent to Rs 8.99 in tepid market, but the rally cooled off at Rs 8.71 by 9.45 am. The scrip was closed at Rs 8.33 on Wednesday.
The rail up for the construction is 7.95 kms long, elevated via duct section and nine elevated stations on Corridor 4 of phase II of the Chennai Metro. These stations include Chennai Bypass crossing, Iyyappanthangal Bus Depot, Katupakkam, Kumananchavadi, Karayanchavadi, Muallai Thottam, Poonamallee Bus Terminus, Poonamallee Bypass.
In the past, HCC has been associated with Delhi Metro totalling 18.14 kms of tunnels and 13 underground stations and with Kolkata Metro, constructing 6.47 kms tunnel and 4 underground stations. With Mumbai Metro I, the company has built 8 elevated stations.
KEC International surged 5 per cent Rs 402, compared to the previous close of Rs 381.80. However, the scrip was trading at Rs 391.50 at 9.45 am in morning.
The stock could languish at current levels for next three-six months, Edelweiss said. Prabhudas Lilladher has an accumulate rating on the stock with a target of Rs 420. Nomura India has a target of Rs 435 on the stock.
