Hindustan Construction Company (HCC) Jumps on ₹1,000 Crore Rights Issue: Share Price Today, Key Dates, and 2025–26 Outlook

Mumbai, 2 December 2025 — Hindustan Construction Company Ltd (HCC) is back in the spotlight. The stock is surging in today’s trade after the board approved a deeply discounted ₹1,000 crore rights issue, a move aimed at strengthening the balance sheet and supporting future growth. ^[1]

This article walks through today’s price action, the exact rights issue terms, the latest financials, and what various analysts and models currently project for HCC’s share price.

HCC share price today (2 December 2025)

Around midday on 2 December 2025, HCC is trading in the ₹26.5–₹27 range on the NSE, up roughly 11–12% from Monday’s close of ₹24.02. Intraday, the stock has hit a high of ₹27.46 and a low near ₹24.02, with heavy volumes running into tens of millions of shares on both NSE and BSE. ^[2]

Despite today’s bounce, HCC remains sharply below its 52‑week high of about ₹47.8 and only modestly above its 52‑week low near ₹22.0. One‑year returns are still negative in the range of –37% to –44% depending on the data provider, while three‑year returns are positive (roughly +30–45%) and five‑year returns are in multi‑bagger territory (around +300–350%). ^[3]

Market data platforms also flag high intraday activity: MarketsMojo notes a day change of about 10.5%, outperformance of the construction sector by over 9 percentage points, and the stock trading above its 5‑day and 20‑day moving averages, with intraday volatility above 6%. ^[4]

What triggered the rally: a deeply discounted ₹1,000 crore rights issue

The key catalyst today is the formal announcement of terms for a sizeable rights issue:

• Issue size: 79,99,91,900 equity shares
• Total amount: ₹999.99 crore (assuming full subscription)
• Issue price: ₹12.50 per share (face value ₹1 + premium ₹11.50)
• Ratio: 277 rights shares for every 630 fully paid‑up shares held on the record date. ^[5]

The issue price of ₹12.50 represents:

• A discount of about 54.5% to today’s intraday high of ₹27.46, as highlighted in Business Today’s coverage. ^[6]
• Roughly a 48–50% discount to the previous closing price around ₹24, according to Angel One’s analysis earlier in the session. ^[7]

That’s a very deep discount by Indian large‑rights standards, clearly designed to maximise subscription.

Key dates for HCC rights issue

As per the company’s filings and the Capital Market/Business Standard update: ^[8]

• Record date: Friday, 5 December 2025
• Rights issue opening date: Friday, 12 December 2025
• Last date for on‑market renunciation: Wednesday, 17 December 2025
• Last date for off‑market renunciation: Friday, 19 December 2025
• Rights issue closing date: Monday, 22 December 2025

For eligibility, shareholders must hold HCC shares before the market close on Thursday, 4 December (purchases on the record date itself generally do not qualify). ^[9]

Dilution and post‑issue capital structure

The rights issue will significantly expand HCC’s equity base:

• Pre‑issue shares: 181.94 crore
• Post‑issue shares: 261.95 crore

That’s an increase of about 80 crore shares, or roughly 44% dilution in the equity base if you don’t participate in the rights. ^[10]

In plain language:

• Existing shareholders who do subscribe in full mainly get a cheaper entry price (₹12.50) and help the company raise equity capital.
• Shareholders who ignore or cannot subscribe will see their percentage stake in the company shrink meaningfully.

The company and intermediaries frame the issue as a way to raise growth capital without adding debt, which matters for a project‑heavy, working‑capital‑intensive EPC (engineering, procurement, construction) business. ^[11]

Business snapshot: a 100‑year‑old infra player in cleanup mode

HCC is one of India’s oldest infrastructure and EPC companies, founded in 1926, with a long track record in nuclear plants, hydropower, metros, highways, bridges and tunnels. Its portfolio includes high‑profile assets such as parts of the Bandra‑Worli Sea Link and the Mumbai Coastal Road project. ^[12]

Order book and pipeline

According to the FY25 annual report and subsequent coverage:

• Order backlog as of 31 March 2025: ₹11,852 crore
• New contracts in FY25: ₹5,692.6 crore (HCC’s share ₹3,472 crore)
• L1 (lowest bidder) position: Projects worth about ₹3,513 crore
• Bidding pipeline: Over ₹70,000 crore across railways, roads, metros, hydropower and urban infrastructure. ^[13]

Later commentary on Q2 FY26 places the order book around ₹13,100+ crore as of 30 September 2025, indicating a reasonably visible revenue pipeline over the next few years. ^[14]

Latest financial performance: FY25 and Q2 FY26

FY25 (year ended 31 March 2025)

From the FY25 annual report and market data: ^[15]

• Consolidated revenue: ~₹5,603 crore (down from ₹7,007 crore in FY24)
• Standalone turnover: ₹4,801.1 crore
• Standalone net profit: ₹84.9 crore
• Standalone EBITDA margin: 19.4%
• Standalone PAT trend:
  • FY23: ₹253 crore
  • FY24: ₹179 crore
  • FY25: ₹85 crore

So, HCC has clearly moved from deep losses earlier in the decade to consistent profits, but revenue and profit are trending down over the last two financial years. ^[16]

The balance sheet, however, has improved:

• Total debt‑to‑equity (consolidated) fell to about 0.79x in FY25 from 1.88x in FY24 and 2.71x in FY23, as per Economic Times data, helped by earlier QIPs and a 2024 rights issue. ^[17]
• HCC reports that arbitration awards and settlements allowed prepayment of fund‑based debt from three lenders, and its credit rating has been upgraded to investment grade. ^[18]

Q2 FY26 (quarter ended 30 September 2025)

Market data platforms show a mixed picture for the latest quarter: ^[19]

• Consolidated revenue: ~₹960 crore (vs ~₹1,407 crore a year earlier) – about 32% year‑on‑year decline.
• Total income: ~₹983 crore (down ~31% year‑on‑year).
• Profit after tax: about ₹48–50 crore, vs roughly ₹64 crore in Q2 FY25 — a decline of roughly 25% year‑on‑year, and slightly lower sequentially.
• Net margin: about 4.8–5.0%.
• EBIT / EBITDA margin: in the mid‑teens (around 16–17%).

The pattern is clear:

• Revenue is under pressure.
• Profitability has stabilised in the black but is volatile and not yet at “comfortably high” levels.
• A meaningful portion of historic profits has come from “other income” (including arbitration awards), not just core construction margins. ^[20]

Valuation snapshot: how expensive is HCC after the rally?

Different data providers quote slightly different numbers, but the broad valuation picture on 2 December 2025 looks like this: ^[21]

• Share price: ~₹26.5–₹26.9
• Market cap: ~₹4,300–4,900 crore
• TTM EPS: roughly ₹0.62–₹0.82
• Price‑to‑earnings (P/E): around 30–33x
• Price‑to‑book (P/B): about 2.5–4.8x, with book value per share near ₹4.98
• Price‑to‑sales (market‑cap‑to‑sales): roughly 0.8–1.0x

The sector P/E for infrastructure developers is near 50x, so by that yardstick HCC looks cheaper than the sector average on earnings, but richer than its own stressed history. ^[22]

Smart‑Investing.in takes a stricter view:

• It estimates an “intrinsic value” of about ₹14.56 per share and notes HCC trading at a roughly 65% premium to that level at the 2 December price zone.
• The site classifies HCC’s fundamentals as “good”, but its valuation as “overvalued” and debt burden as “high,” and highlights weak quarterly trends in revenue and profit. ^[23]

So depending on your framework, HCC is either:

• A relatively low P/S, improving‑ROE infra turnaround trading at a discount to sector valuations, or
• A still levered, volatile business priced well above conservative fair‑value estimates.

Both views have data behind them; which one you lean toward depends on how much weight you give to future execution versus past volatility.

Shareholding and promoter pledge: who owns HCC now?

The Economic Times shareholding pattern for September 2025 shows: ^[24]

• Promoters: 16.71%
• Promoter pledge: 78.89% of promoter holding
• FIIs: 9.57%
• DIIs: 2.25% (of which mutual funds ~0.66%)
• Public & others: 71.47%

That very high level of promoter share pledge is a major risk flag for many investors. A heavily pledged promoter stake can amplify downside if lenders invoke or sell pledged shares during stress, and is often seen as a signal of historic financial strain.

The rights issue offers one path to slowly normalise this over time—if proceeds are used to reduce debt and improve cash flows—but the pledge issue does not vanish overnight.

How the rights money fits into the balance‑sheet story

Over FY24–FY25, HCC has already raised equity via: ^[25]

• A rights issue of ₹350 crore (April 2024)
• A qualified institutional placement (QIP) of ₹600 crore (December 2024)

Proceeds were used to:

• Prepay certain fund‑based loans
• Unlock cash via arbitration settlements
• Repair the long‑damaged net worth and reduce debt‑to‑equity

The new ₹1,000 crore rights issue in December 2025 continues that trajectory. If effectively deployed, it can:

• Further reduce leverage and interest costs (HCC still spends over 10% of operating revenues on interest). ^[26]
• Provide growth capital to execute its ₹11,000–13,000 crore order book and pursue new bids worth tens of thousands of crores. ^[27]

The trade‑off is clear:

• Short‑term: EPS gets diluted because the equity base jumps ~44%.
• Medium‑term: If debt falls and execution remains strong, interest savings and scale could offset dilution and grow per‑share earnings.

What are analysts and models forecasting for HCC?

Forecasts currently span from cautious to quite optimistic. None are guaranteed, but they shape market expectations.

1. Street price targets (fundamental / broker driven)

According to AlphaSpread’s compilation of “Wall Street” estimates: ^[28]

• Average 12‑month target: ₹35.7
• Low target: ₹35.35
• High target: ₹36.75

From a current price near ₹26.75, that implies about 32–37% upside over one year if the forecast plays out.

Economic Times also notes a median 12‑month target around ₹35 from at least one tracking analyst, and classifies the rating as “Strong Buy”. ^[29]

Some individual recommendations mentioned on ET’s page include:

• Yes Securities: Target ₹58 (Buy)
• manasjaiswal.com: Target ₹41 (Buy) ^[30]

These higher targets suggest a subset of analysts or technical strategists see scope for a sustained re‑rating if the deleveraging and order‑book story plays out.

Separately, Ventura Securities highlighted HCC around Diwali 2025 as a “turnaround” bet with a target of ₹64, implying potential upside of ~120% from then‑prevailing levels, anchored in the large order book and improving balance sheet. ^[31]

2. Algorithmic / technical forecasts

WalletInvestor (technical model) currently shows: ^[32]

• Current price (BSE basis): ₹24.35 (data snapshot)
• 1‑year forecast: ₹30.05
• 5‑year forecast (to late‑2030): ₹50.52

It labels HCC a “good long‑term (1‑year) investment” based on its technical system, implying an expected 5‑year gain of about +107% from the reference price. Short‑term projections over the next few trading days mostly sit in the ₹22–24 band, reflecting the usual choppiness.

Technical‑oriented Indian sites (like MunafaSutra and others) have been flagging near‑term resistance levels in the upper‑20s and psychological zones near ₹30, especially after the recent breakdown from 52‑week highs around ₹47–48 earlier this year. ^[33]

3. Valuation‑driven intrinsic value estimates

As discussed earlier, Smart‑Investing.in sees HCC as overvalued, not undervalued, at current levels: ^[34]

• Intrinsic value estimate: ₹14.56
• EOD price on 1 December 2025: ₹24.05
• Conclusion: stock trading at ~65% premium to fair value, with “good fundamentals” but “bad valuations” and still‑high debt.

This starkly contrasts with the “multi‑bagger potential” narratives from more bullish houses and underscores how sensitive any fair‑value estimate is to one’s assumptions about future margins, working capital cycle, and order‑book execution.

Key risks investors are watching

Even the bullish theses on HCC usually acknowledge a cluster of risks: ^[35]

1. High promoter pledge: With ~79% of promoter shares pledged, any stress in the company or broader market can create overhang risk.
2. Earnings volatility: Revenue fell ~32% year‑on‑year in Q2 FY26, and profits historically have swung due to arbitration and one‑off items.
3. Working capital & cash flow: Infra EPC businesses rely on timely payments from government and PSU clients; delays can strain cash flows and borrowings.
4. Execution risk: HCC specialises in complex nuclear, hydro and tunnelling projects. These can face cost overruns, geological surprises and political delays.
5. Dilution: Repeated equity raises (rights + QIPs) dilute existing shareholders; if future returns on the raised capital disappoint, per‑share metrics will suffer.
6. Macro & policy risk: Infra spending is heavily linked to government capex cycles, interest‑rate trends and regulatory clearances.

On the positive side, the company now has:

• A strengthened order book
• An upgraded credit rating
• Lower leverage than in its most stressed years
• Improving, though still modest, ROE and ROCE metrics

The tug‑of‑war between those positives and the risk factors above is essentially what the market is trying to price right now.

What to watch next

Over the coming weeks and quarters, investors and traders will be watching a few things very closely: ^[36]

• Rights issue subscription levels: A fully subscribed issue at ₹12.5 would be a strong signal of shareholder and institutional confidence. Weak subscription would send the opposite message.
• Use of proceeds: Concrete evidence that the ₹1,000 crore is used to reduce expensive debt and strengthen working capital, rather than just plugging leaks.
• Order‑book execution: Conversion of the ₹11,000–13,000 crore backlog into revenue and cash, without major cost overruns.
• Leverage metrics: Further declines in debt‑to‑equity and improved interest coverage over FY26–27.
• Promoter pledge trend: Any reduction in pledged shares would be a significant de‑risking signal.
• Margins and profitability: Sustaining EBITDA margins in the high‑teens while stabilising revenue would support the bull case.

Quick FAQs for readers

Is HCC a good stock to buy now?

That depends entirely on your risk tolerance. On 2 December 2025, HCC is:

• A small‑cap infra turnaround with a large order book and improving balance sheet metrics. ^[37]
• Still facing high promoter pledge, earnings volatility and meaningful dilution from repeated equity raises. ^[38]

Some brokers and models see 30–100% upside over the next few years; others argue the stock is already trading above fair value. ^[39]

This article is informational, not a recommendation; anyone considering the stock should align it with their own risk profile and, ideally, consult a qualified adviser.

What is the current 12‑month share price target for HCC?

Based on currently available public data:

• Average “Street” target: About ₹35.7 (AlphaSpread compilation) ^[40]
• Median target displayed on ET: Around ₹35 ^[41]
• Selected higher targets (from individual recommendations) go up to ₹58–64 in some bullish reports. ^[42]

Targets can and do change as new quarterly results and order wins come in.

Should existing shareholders subscribe to the rights issue?

The key trade‑offs are:

• Pros:
  • Deep discount (₹12.5 vs cash‑market price in the mid‑20s).
  • Potential participation in any upside if deleveraging and growth work out.
• Cons:
  • More capital at risk in a still‑volatile, pledged‑promoter small‑cap.
  • If you don’t believe in the long‑term story, averaging down via rights may not make sense.

It’s a capital‑allocation decision that depends on your view of HCC’s future and your overall portfolio; the company’s own messaging is clearly that this is a balance‑sheet‑strengthening move. ^[43]

Bottom line

On 2 December 2025, HCC is trading like a classic “high‑beta turnaround infra” story: a stock with a messy past, improving balance sheet, chunky order book, and a big equity raise that both dilutes and potentially de‑risks the future.

The rights issue makes today’s price action news‑worthy; the real test will be in how effectively HCC converts fresh equity into durable cash flows, lower leverage, and steadier profits over the coming years.

References

1. www.businesstoday.in, 2. www.moneycontrol.com, 3. economictimes.indiatimes.com, 4. www.marketsmojo.com, 5. www.business-standard.com, 6. www.businesstoday.in, 7. www.angelone.in, 8. www.business-standard.com, 9. www.businesstoday.in, 10. www.business-standard.com, 11. www.businesstoday.in, 12. hccindia.com, 13. hccindia.com, 14. www.icicidirect.com, 15. hccindia.com, 16. economictimes.indiatimes.com, 17. hccindia.com, 18. hccindia.com, 19. www.moneycontrol.com, 20. www.indmoney.com, 21. www.indmoney.com, 22. www.indmoney.com, 23. www.smart-investing.in, 24. economictimes.indiatimes.com, 25. hccindia.com, 26. economictimes.indiatimes.com, 27. hccindia.com, 28. www.alphaspread.com, 29. economictimes.indiatimes.com, 30. economictimes.indiatimes.com, 31. m.economictimes.com, 32. walletinvestor.com, 33. munafasutra.com, 34. www.smart-investing.in, 35. economictimes.indiatimes.com, 36. www.business-standard.com, 37. hccindia.com, 38. economictimes.indiatimes.com, 39. www.alphaspread.com, 40. www.alphaspread.com, 41. economictimes.indiatimes.com, 42. economictimes.indiatimes.com, 43. www.businesstoday.in