Stock market analysts have maintained ‘buy’ rating on Hindustan Construction Company Ltd with an intraday target of Rs 133.

According to them, interested traders can purchase the stock above Rs 131 with a strict stop loss of Rs 128.25. If the stock market remains positive, the stock pricing becomes more attractive, and reach above Rs 134.

Shares of the company, on Wednesday (Nov 04), closed at Rs 128.05 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 3.24 and 38.91 respectively. The share price has seen a 52-week high of Rs 146.50 and a low of Rs 28.80 on BSE.

HCC has recorded 23.6% increase in turnover in Q2 2009-10 at Rs 8.62 billion as against Rs 6.98 billion in the same period of the last year. The power segment has added 46% to the income while the roads and water supply-irrigation areas made 29% and 25%, respectively.

The operating profit of the company surged 7.2% to Rs 895 million in Q2 2009-10 as against Rs 834 million during the corresponding quarter of 2008.

Though, the company’s net profit stands at Rs 55 million, the numbers are not comparable as HCC booked one time losses on the sale of capital assets in Q2 2009-10 while the Q2 net profit for the previous year was inclusive of forex gain of Rs 245 million included in other income.

HCC, in Oct 2009, has pocketed an EPC contract worth Rs 1,676.70 million for water supply scheme from Kesaria to Sonaria by Gujarat Water Infrastructure.

The deal is scheduled to be finished in 18 months.

Under the pact, the company will build two reservoirs including one at Kesaria together with pumping station and the other at Veeraval and a 62.28 km pipeline linking these two reservoirs.