Hindustan Construction Company Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:27 am

Market Cap	7,318 Cr.
Current Price	43.6
High / Low	57.5/27.0
Stock P/E
Book Value	1.57
Dividend Yield	0.00 %
ROCE	21.4 %
ROE	%
Face Value	1.00
PEG Ratio	0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Peninsula Land Ltd	1,406 Cr.	45.5	78.2/43.3	24.1	8.73	0.00 %	25.9 %	67.0 %	2.00
Patel Engineering Ltd	4,479 Cr.	53.0	79.0/46.2	16.4	43.2	0.00 %	13.9 %	7.50 %	1.00
Hindustan Construction Company Ltd	7,318 Cr.	43.6	57.5/27.0		1.57	0.00 %	21.4 %	%	1.00
Industry Average	4,401.00 Cr	47.37		20.25	17.83	0.00%	20.40%	37.25%	1.33

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	2,453.94	2,775.60	2,580.14	2,920.60	2,228.92	2,257.02	1,357.62	3,094.09	1,926.52	1,832.59	1,474.47	1,773.13	1,815.95
Expenses	2,295.58	2,451.68	2,211.46	2,537.80	2,202.76	1,915.72	1,501.93	2,779.17	1,630.32	1,578.75	1,235.75	1,890.64	1,663.46
Operating Profit	158.36	323.92	368.68	382.80	26.16	341.30	-144.31	314.92	296.20	253.84	238.72	-117.51	152.49
OPM %	6.45%	11.67%	14.29%	13.11%	1.17%	15.12%	-10.63%	10.18%	15.37%	13.85%	16.19%	-6.63%	8.40%
Other Income	280.00	157.72	15.53	10.90	16.24	250.07	73.70	170.67	29.71	34.58	199.45	709.75	33.13
Interest	247.75	251.53	263.30	293.75	262.95	247.74	235.63	265.99	246.16	256.08	146.25	164.78	146.03
Depreciation	35.72	33.02	34.07	52.80	32.22	32.01	31.98	32.35	29.00	27.76	30.43	17.91	25.77
Profit before tax	154.89	197.09	86.84	47.15	-252.77	311.62	-338.22	187.25	50.75	4.58	261.49	409.55	13.82
Tax %	-16.20%	29.36%	25.81%	66.24%	10.32%	-2.38%	-23.76%	-1.38%	-3.90%	161.14%	30.28%	39.95%	117.80%
Net Profit	179.98	139.23	64.43	15.92	-278.86	319.03	-257.85	189.84	52.73	-2.80	182.30	245.93	-2.46
EPS in Rs	1.07	0.83	0.38	0.09	-1.66	1.90	-1.54	1.13	0.31	-0.02	1.09	1.46	-0.01

Last Updated: October 8, 2024, 1:17 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 8, 2024, 1:17 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	8,510	9,668	10,353	8,540	9,867	10,132	10,544	9,444	8,248	10,668	8,270	7,007	6,896
Expenses	8,129	8,830	9,108	7,500	9,103	9,401	9,763	8,600	7,857	9,480	7,722	6,336	6,369
Operating Profit	381	838	1,244	1,040	764	731	781	844	391	1,188	548	671	528
OPM %	4%	9%	12%	12%	8%	7%	7%	9%	5%	11%	7%	10%	8%
Other Income	207	159	164	126	-37	-105	-452	487	-122	615	497	974	977
Interest	900	1,091	1,280	1,220	1,543	1,525	808	817	1,001	1,036	1,012	813	713
Depreciation	314	307	327	250	206	201	177	152	136	138	128	105	102
Profit before tax	-627	-401	-199	-304	-1,022	-1,100	-657	362	-867	628	-94	726	689
Tax %	-14%	-4%	14%	76%	-4%	-1%	-92%	46%	-30%	10%	-71%	34%
Net Profit	-529	-364	-208	-537	-983	-1,090	-50	197	-610	563	-28	478	423
EPS in Rs	-4.81	-2.76	-1.49	-3.49	-4.53	-4.86	-0.30	1.17	-3.63	3.35	-0.17	2.85	2.52
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	31.19%	42.86%	-158.17%	-83.05%	-10.89%	95.41%	494.00%	-409.64%	192.30%	-104.97%	1807.14%
Change in YoY Net Profit Growth (%)	0.00%	11.67%	-201.03%	75.12%	72.17%	106.30%	398.59%	-903.64%	601.94%	-297.27%	1912.12%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	-3%
5 Years:	-8%
3 Years:	-5%
TTM:	-21%

Compounded Profit Growth
10 Years:	4%
5 Years:	%
3 Years:	18%
TTM:	59%

Stock Price CAGR
10 Years:	6%
5 Years:	35%
3 Years:	46%
1 Year:	56%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	%
Last Year:	%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 3:29 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	61	61	65	78	101	102	151	151	151	151	151	151	168
Reserves	455	496	459	-560	-369	-1,170	-1,151	-910	-1,469	-810	-866	-320	96
Borrowings	9,969	11,150	11,880	9,495	9,780	9,456	4,108	4,253	4,777	2,018	5,512	2,223	2,232
Other Liabilities	4,727	6,095	6,606	6,718	7,557	8,198	7,802	8,707	9,322	12,835	8,381	7,005	7,512
Total Liabilities	15,211	17,801	19,010	15,730	17,069	16,586	10,910	12,200	12,781	14,194	13,178	9,059	10,007
Fixed Assets	3,256	3,233	4,494	1,865	1,713	1,729	575	771	866	723	623	449	392
CWIP	2,717	3,645	3,135	1,696	1,890	1,714	169	178	2	1	0	1	1
Investments	156	159	273	601	476	417	181	356	418	59	79	246	297
Other Assets	9,082	10,763	11,108	11,568	12,990	12,726	9,985	10,895	11,496	13,411	12,475	8,364	9,318
Total Assets	15,211	17,801	19,010	15,730	17,069	16,586	10,910	12,200	12,781	14,194	13,178	9,059	10,007

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	632	740	702	87	48	1,441	183	538	348	947	16	91
Cash from Investing Activity +	-996	-1,270	-843	180	-59	71	-5	-18	-83	-208	448	536
Cash from Financing Activity +	482	470	-181	-397	46	-1,336	-312	-514	101	-660	-603	-810
Net Cash Flow	118	-60	-322	-131	34	176	-133	5	366	79	-139	-183

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	372.00	827.00	-10.00	-8.00	755.00	722.00	777.00	840.00	387.00	-1.00	543.00	669.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	29	28	26	25	85	89	123	73	199	72	119	115
Inventory Days	1,208	2,007	2,442	876	1,093	813	283	201			179	183
Days Payable	425	656	1,248	1,073	1,451	1,185	1,229	1,301			1,093	1,035
Cash Conversion Cycle	812	1,379	1,220	-172	-273	-282	-824	-1,027	199	72	-795	-738
Working Capital Days	76	33	16	34	23	-109	-3	-71	68	-18	-3	45
ROCE %	2%	6%	8%	7%	6%	7%	12%	29%	11%	50%	16%	21%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	34.71%	34.71%	34.71%	32.56%	25.96%	18.59%	18.59%	18.59%	18.59%	18.59%	18.59%	18.59%
FIIs	11.43%	11.63%	12.15%	11.83%	12.08%	12.13%	12.29%	5.64%	5.58%	7.84%	9.19%	9.63%
DIIs	16.44%	13.44%	13.44%	13.36%	13.36%	13.11%	12.45%	11.76%	9.52%	9.38%	8.19%	6.55%
Public	37.41%	40.22%	39.70%	42.24%	48.59%	56.16%	56.66%	63.99%	66.30%	64.18%	64.02%	65.23%
No. of Shareholders	2,72,596	3,17,966	3,29,888	3,34,437	3,33,640	3,45,123	3,58,031	3,47,653	3,82,846	3,95,914	5,03,538	6,41,834

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
HDFC Infrastructure Fund - Regular Plan	6,000,000	1.1	28.31	438,618	2024-12-19	1267.93%
Shriram Flexi Cap Fund	438,618	1.56	2.07	438,618	2024-12-19	0%

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	1.00	1.00	1.00	1.00	1.00
Basic EPS (Rs.)	3.16	-0.19	2.64	-4.03	1.30
Diluted EPS (Rs.)	3.16	-0.19	2.64	-4.03	1.30
Cash EPS (Rs.)	3.58	0.60	2.07	-3.57	1.06
Book Value[Excl.RevalReserv]/Share (Rs.)	-1.11	-4.72	-5.19	-8.71	-5.02
Book Value[Incl.RevalReserv]/Share (Rs.)	-1.11	-4.72	-5.19	-8.71	-5.02
Revenue From Operations / Share (Rs.)	46.31	65.14	70.52	54.51	62.42
PBDIT / Share (Rs.)	5.31	4.18	8.89	3.16	6.09
PBIT / Share (Rs.)	4.62	3.33	7.97	2.26	5.09
PBT / Share (Rs.)	4.87	-0.65	1.86	-6.16	1.15
Net Profit / Share (Rs.)	2.89	-0.24	1.16	-4.46	0.06
NP After MI And SOA / Share (Rs.)	3.16	-0.18	2.64	-4.03	1.30
PBDIT Margin (%)	11.47	6.41	12.60	5.79	9.76
PBIT Margin (%)	9.97	5.11	11.30	4.14	8.15
PBT Margin (%)	10.50	-1.00	2.64	-11.30	1.84
Net Profit Margin (%)	6.23	-0.37	1.64	-8.18	0.09
NP After MI And SOA Margin (%)	6.82	-0.28	3.74	-7.39	2.08
Return on Networth / Equity (%)	-283.80	0.00	-50.92	0.00	-25.95
Return on Capital Employeed (%)	22.13	8.18	51.79	17.07	29.90
Return On Assets (%)	5.27	-0.21	2.81	-4.77	1.61
Long Term Debt / Equity (X)	-9.92	-6.79	-1.50	-1.07	-2.09
Total Debt / Equity (X)	-12.51	-7.41	-2.28	-2.63	-3.94
Asset Turnover Ratio (%)	0.63	0.46	0.38	0.22	0.33
Current Ratio (X)	1.16	1.09	1.03	0.96	0.75
Quick Ratio (X)	1.08	1.02	0.98	0.92	0.70
Interest Coverage Ratio (X)	0.98	0.62	1.30	0.47	1.13
Interest Coverage Ratio (Post Tax) (X)	0.55	0.55	1.09	0.59	0.74
Enterprise Value (Cr.)	6370.69	6212.41	2624.46	3422.38	2753.55
EV / Net Operating Revenue (X)	0.90	0.63	0.24	0.41	0.29
EV / EBITDA (X)	7.93	9.82	1.95	7.16	2.99
MarketCap / Net Operating Revenue (X)	0.68	0.21	0.22	0.14	0.06
Price / BV (X)	-28.35	-2.90	-3.03	-0.92	-0.79
Price / Net Operating Revenue (X)	0.68	0.21	0.22	0.14	0.06
EarningsYield	0.10	-0.01	0.16	-0.49	0.32

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 3.60

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Overvalued by 91.74% compared to the current share price 43.60

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Intrinsic Value of as of December 22, 2024 is: 5.34

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Overvalued by 87.75% compared to the current share price 43.60

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 48.20%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of 7.58, which is a positive sign. The stock has a low average Cash Conversion Cycle of -166.67, which is a positive sign.	The stock has a low average ROCE of 14.58%, which may not be favorable. The company has higher borrowings (6,681.00) compared to reserves (-470.69), which may suggest financial risk. The company has not shown consistent growth in sales (8.62) and profit (-57.38).

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
1. Net Profit Margin: 6.23%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 22.13% (Industry Average ROCE: 20.4%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: -283.8% (Industry Average ROE: 37.25%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 0.55
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 1.08
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 0 (Industry average Stock P/E: 20.25)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: -12.51
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Hindustan Construction Company Ltd. is a Public Limited Listed company incorporated on 28/01/1926 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L45200MH1926PLC001228 and registration number is 001228. Currently Company is involved in the business activities of Construction and maintenance of motorways, streets, roads, other vehicular and pedestrian ways, highways, bridges, tunnels and subways. Company’s Total Operating Revenue is Rs. 4666.28 Cr. and Equity Capital is Rs. 151.31 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Construction, Contracting & Engineering	Hincon House, Lal Bahadur Shastri Marg, Mumbai Maharashtra 400083	secretarial@hccindia.com http://www.hccindia.com

Management
Name	Position Held
Mr. Ajit Gulabchand	Chairman
Mr. Arjun Dhawan	Executive Vice Chairman
Mr. Jaspreet Bhullar	Managing Director & CEO
Mr. Aditya Pratap Jain	Non Exe.Non Ind.Director
Mr. Santosh Janakiram	Independent Director
Mr. Mahendra Singh Mehta	Independent Director
Dr. Mita Dixit	Independent Director
Mr. N R Acharyulu	Independent Director
Mr. Arun Karambelkar	Independent Director
Mr. Mukul Sarkar	Nominee Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹3.60, which is 91.74% lower than the current market price of ₹43.60. The stock has a market capitalization of 7,318 Cr. and recorded a high/low of 57.5/27.0 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹96 Cr and total liabilities of ₹10,007 Cr.

What is the Market Cap of ?

The Market Cap of is 7,318 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 43.6.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 57.5/27.0.

What is the Stock P/E of ?

The Stock P/E of is .

What is the Book Value of ?

The Book Value of is 1.57.

What is the Dividend Yield of ?

The Dividend Yield of is 0.00 %.

What is the ROCE of ?

The ROCE of is 21.4 %.

What is the ROE of ?

The ROE of is %.

What is the Face Value of ?

The Face Value of is 1.00.