Multibagger stock below Rs 20: Why Ventura sees 126% upside in this Mukul Mahavir Agrawal share?
HCC reported a decline in Q2 FY27 revenue and profit, but Ventura remains positive on its infrastructure pipeline, execution prospects and debt reduction plans.
- Nov 11, 2026,
- Updated Nov 11, 2026 2:50 PM IST
Hindustan Construction Company Ltd (HCC) is positioned to benefit from India’s infrastructure spending and its project pipeline despite reporting weaker results for the second quarter of FY27, according to a Ventura report. India’s FY27 infrastructure capital expenditure allocation rose 9 per cent year-on-year (YoY) to Rs 12.2 lakh crore across railways, roads, defence, energy and urban development.
Ventura has recommended a ‘Buy’ rating on HCC with a price target of Rs 42, indicating potential upside of 126 per cent over 24 months. The brokerage cited HCC’s execution experience in hydropower, tunnelling, nuclear, metro and transport projects but identified low promoter holding as a key risk.
HCC’s consolidated revenue declined 6.7 per cent YoY and 9.7 per cent quarter-on-quarter (QoQ) to Rs 897 crore in Q2FY27, as a stagnant order book affected revenue. EBITDA fell 30.4 per cent YoY and 1.8 per cent QoQ to Rs 103 crore, while the margin contracted 390 basis points YoY but improved 100 basis points sequentially to 11.5 per cent.
Profit after tax dropped 52.8 per cent YoY and 55.8 per cent QoQ to Rs 23 crore. The PAT margin stood at 2.5 per cent, down 250 basis points YoY and 260 basis points sequentially. Lower other income, a higher tax rate and interest accruals at non-material subsidiaries also weighed on profit.
The EPC company’s order backlog stood at Rs 12,901 crore. Order inflows during H1FY27 were Rs 524 crore, as client-side clearances delayed hydropower project awards. HCC has L1 bids worth Rs 2,010 crore, with its share amounting to Rs 1,557 crore, while 16 bids worth about Rs 34,805 crore are under evaluation.
HCC’s share in these bids is about Rs 32,386 crore. It aims to roughly double its order book by the end of FY27, supported by a pipeline worth Rs 85,907 crore. HCC prepaid Rs 100 crore of debt in Q2FY27 and plans to repay another Rs 108 crore by December 2026, followed by about Rs 350 crore in March 2027.
The Supreme Court upheld a Rs 210-crore arbitration award in HCC’s favour, with the amount expected in Q3FY27. Both tunnel boring machines (TBMs) at Indore Metro have started tunnelling, while mobilisation is under way at Patna Metro. Work is also progressing at the Bhivpuri PSP, Vishnugad Pipalkoti HEP and Tapovan Vishnugad HEP projects.
Ventura expects HCC’s revenue, EBITDA and net profit to reach Rs 6,276 crore, Rs 906 crore and Rs 612 crore, respectively, by FY29. It expects margins to improve as execution scales up, while debt reduction, disciplined bidding and potential order wins support the outlook.
Marquee investor Mukul Mahavir Agrawal owned 5,00,00,000 equity shares, or a 1.91 per cent stake, in the company as of September 30, 2026. His stake was valued at Rs 96.70 crore based on Wednesday’s high of Rs 19.34. The company’s total market capitalisation stood at close to Rs 5,000 crore.
Hindustan Construction Company Ltd (HCC) is positioned to benefit from India’s infrastructure spending and its project pipeline despite reporting weaker results for the second quarter of FY27, according to a Ventura report. India’s FY27 infrastructure capital expenditure allocation rose 9 per cent year-on-year (YoY) to Rs 12.2 lakh crore across railways, roads, defence, energy and urban development.
Ventura has recommended a ‘Buy’ rating on HCC with a price target of Rs 42, indicating potential upside of 126 per cent over 24 months. The brokerage cited HCC’s execution experience in hydropower, tunnelling, nuclear, metro and transport projects but identified low promoter holding as a key risk.
HCC’s consolidated revenue declined 6.7 per cent YoY and 9.7 per cent quarter-on-quarter (QoQ) to Rs 897 crore in Q2FY27, as a stagnant order book affected revenue. EBITDA fell 30.4 per cent YoY and 1.8 per cent QoQ to Rs 103 crore, while the margin contracted 390 basis points YoY but improved 100 basis points sequentially to 11.5 per cent.
Profit after tax dropped 52.8 per cent YoY and 55.8 per cent QoQ to Rs 23 crore. The PAT margin stood at 2.5 per cent, down 250 basis points YoY and 260 basis points sequentially. Lower other income, a higher tax rate and interest accruals at non-material subsidiaries also weighed on profit.
The EPC company’s order backlog stood at Rs 12,901 crore. Order inflows during H1FY27 were Rs 524 crore, as client-side clearances delayed hydropower project awards. HCC has L1 bids worth Rs 2,010 crore, with its share amounting to Rs 1,557 crore, while 16 bids worth about Rs 34,805 crore are under evaluation.
HCC’s share in these bids is about Rs 32,386 crore. It aims to roughly double its order book by the end of FY27, supported by a pipeline worth Rs 85,907 crore. HCC prepaid Rs 100 crore of debt in Q2FY27 and plans to repay another Rs 108 crore by December 2026, followed by about Rs 350 crore in March 2027.
The Supreme Court upheld a Rs 210-crore arbitration award in HCC’s favour, with the amount expected in Q3FY27. Both tunnel boring machines (TBMs) at Indore Metro have started tunnelling, while mobilisation is under way at Patna Metro. Work is also progressing at the Bhivpuri PSP, Vishnugad Pipalkoti HEP and Tapovan Vishnugad HEP projects.
Ventura expects HCC’s revenue, EBITDA and net profit to reach Rs 6,276 crore, Rs 906 crore and Rs 612 crore, respectively, by FY29. It expects margins to improve as execution scales up, while debt reduction, disciplined bidding and potential order wins support the outlook.
Marquee investor Mukul Mahavir Agrawal owned 5,00,00,000 equity shares, or a 1.91 per cent stake, in the company as of September 30, 2026. His stake was valued at Rs 96.70 crore based on Wednesday’s high of Rs 19.34. The company’s total market capitalisation stood at close to Rs 5,000 crore.