SP Tulsian of sptulsian.com is of the view that Hindustan Construction Company (HCC) can give 50% returns in a year time frame.
Tulsian told CNBC-TV18, "If you see the trigger for the HCC is the Lavasa clearance because we all know that this stock has taken a beating. It use to rule at about Rs 55 to Rs 60 levels and it has corrected to as low as Rs 30 and now ruling at Rs 35. The expert appraisal group of Ministry of Environment’s partial clearance to the Lavasa project is going to be seen as a big trigger. Then the hearing of the matter before Bombay High Court is fixed on March 25, so probably the recommendation or the order from the Bombay High Court will also come giving the clearance — maybe on a minor maybe creating an environment fund or maybe a minor penalty, which will put a burden of about Rs 100-150 crore on the company which will not be seen with very high or very negative by the market."
He further added, "Once that happens, the way will be open for the Lavasa project to go ahead and probably they can expedite the development work as also plan for the IPO. Taking all this into consideration maybe in next about two-three months time we can see stock bouncing back to about Rs 45 from the current level of 35. So maybe a good idea for the traders as well as for the short-term investor and those who wants to take a call even from a year’s point of view share should be able to give a 50% return from this level."
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