Multibagger penny stock under Rs 35 & Rs 12,344 crore order book: Company to sell Swiss unit for Rs 928 crore and its subsidiary enters into share purchase deal with Steiner AG!
The stock is up by 70 per cent in just 1 year and gave multibagger returns of 360 per cent in 3 years.
On Wednesday, shares of Hindustan Construction Company Ltd (HCC Ltd) gained 2.97 per cent to an intraday high and 52-week high of Rs 32.64 per share. At the closing bell, shares of the company were trading at Rs 31.24 per share, down 1.45 per cent with a spurt in volume by more than 1.47 times on BSE.
Hindustan Construction Company's Switzerland subsidiary, Steiner AG, is set to divest its entire stake in the French company Steiner Construction SA for Rs 928 crore. This deal is expected to be finalized by the end of December 2023 or early next year. Through a share purchase agreement, Steiner AG will sell its entire ownership of Steiner Construction SA, a step-down subsidiary of HCC, to Demathieu Bard. This move will result in Steiner Construction SA ceasing to be affiliated with either Steiner AG or HCC.
Additionally, the company has sold a land parcel measuring 235,870 square meters situated at Village Karnala (Tara), Taluka Panvel, District Raigad, Maharashtra, as per the Deed of Conveyance. The sale was completed on December 6, 2023, for a consideration of Rs 95 crore. The buyer is Oak and Stone Construction Private Limited, and it is not affiliated with the promoter group or group companies.
HCC Ltd is principally engaged in the business of providing engineering and construction services, real estate, infrastructure and urban development and management. It is one of the oldest infrastructure companies in India founded in 1926. As of September 30, 2023, the company’s order book stands at Rs 12,344 crore.
According to Quarterly Results, net sales decreased by 18.8 per cent to Rs 1,832.6 crore in Q2FY24 over Q2FY23. The company reported a net loss of Rs 6.88 crore in Q2FY24 compared to a net profit of Rs 317.39 crore in Q2FY23. In its annual results (FY23), the net sales decreased by 8 per cent and reported a net loss of Rs 37.43 crore.
The stock is up by 70 per cent in just 1 year and gave multibagger returns of 360 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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