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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500185 | NSE: HCC

Hindustan Construction Company Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:04 pm

Market Cap 5,997 Cr.
Current Price 35.7
High / Low57.5/26.6
Stock P/E
Book Value 1.57
Dividend Yield0.00 %
ROCE21.4 %
ROE%
Face Value 1.00
PEG Ratio0.00

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

View Share Price Target for Hindustan Construction Company Ltd

Competitors of Hindustan Construction Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Peninsula Land Ltd 1,602 Cr. 51.878.2/43.327.4 8.730.00 %26.1 %69.8 % 2.00
Patel Engineering Ltd 4,400 Cr. 52.079.0/46.216.1 43.20.00 %13.9 %7.50 % 1.00
Hindustan Construction Company Ltd 5,997 Cr. 35.757.5/26.6 1.570.00 %21.4 %% 1.00
Industry Average3,999.67 Cr46.5021.7517.830.00%20.47%38.65%1.33

All Competitor Stocks of Hindustan Construction Company Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales2,453.942,775.602,580.142,920.602,228.922,257.021,357.623,094.091,926.521,832.591,474.471,773.131,815.95
Expenses2,295.582,451.682,211.462,537.802,202.761,915.721,501.932,779.171,630.321,578.751,235.751,890.641,663.46
Operating Profit158.36323.92368.68382.8026.16341.30-144.31314.92296.20253.84238.72-117.51152.49
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 Income280.00157.7215.5310.9016.24250.0773.70170.6729.7134.58199.45709.7533.13
Interest247.75251.53263.30293.75262.95247.74235.63265.99246.16256.08146.25164.78146.03
Depreciation35.7233.0234.0752.8032.2232.0131.9832.3529.0027.7630.4317.9125.77
Profit before tax154.89197.0986.8447.15-252.77311.62-338.22187.2550.754.58261.49409.5513.82
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 Profit179.98139.2364.4315.92-278.86319.03-257.85189.8452.73-2.80182.30245.93-2.46
EPS in Rs1.070.830.380.09-1.661.90-1.541.130.31-0.021.091.46-0.01

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

Quarterly Chart

Profit & Loss - Annual Report

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales8,5109,66810,3538,5409,86710,13210,5449,4448,24810,6688,2707,0076,896
Expenses8,1298,8309,1087,5009,1039,4019,7638,6007,8579,4807,7226,3366,369
Operating Profit3818381,2441,0407647317818443911,188548671528
OPM %4%9%12%12%8%7%7%9%5%11%7%10%8%
Other Income207159164126-37-105-452487-122615497974977
Interest9001,0911,2801,2201,5431,5258088171,0011,0361,012813713
Depreciation314307327250206201177152136138128105102
Profit before tax-627-401-199-304-1,022-1,100-657362-867628-94726689
Tax %-14%-4%14%76%-4%-1%-92%46%-30%10%-71%34%
Net Profit-529-364-208-537-983-1,090-50197-610563-28478423
EPS in Rs-4.81-2.76-1.49-3.49-4.53-4.86-0.301.17-3.633.35-0.172.852.52
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
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%

Hindustan Construction Company Ltd 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:3%
5 Years:29%
3 Years:57%
1 Year:22%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital61616578101102151151151151151151168
Reserves455480459-560-369-1,170-1,151-910-1,469-810-866-32096
Borrowings9,96911,15011,8809,4959,7809,4564,1084,2534,7772,0185,5122,2232,232
Other Liabilities4,7276,1116,6066,7187,5578,1987,8028,7079,32212,8358,3817,0057,512
Total Liabilities15,21117,80119,01015,73017,06916,58610,91012,20012,78114,19413,1789,05910,007
Fixed Assets3,2563,2334,4941,8651,7131,729575771866723623449392
CWIP2,7173,6453,1351,6961,8901,71416917821011
Investments1561592736014764171813564185979246297
Other Assets9,08210,76311,10811,56812,99012,7269,98510,89511,49613,41112,4758,3649,318
Total Assets15,21117,80119,01015,73017,06916,58610,91012,20012,78114,19413,1789,05910,007

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +63274070287481,4411835383489471691
Cash from Investing Activity +-996-1,270-843180-5971-5-18-83-208448536
Cash from Financing Activity +482470-181-39746-1,336-312-514101-660-603-810
Net Cash Flow118-60-322-13134176-133536679-139-183

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow372.00827.00-10.00-8.00755.00722.00777.00840.00387.00-1.00543.00669.00

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days2928262585891237319972119115
Inventory Days1,2082,0072,4428761,093813283201179183
Days Payable4256561,2481,0731,4511,1851,2291,3011,0931,035
Cash Conversion Cycle8121,3791,220-172-273-282-824-1,02719972-795-738
Working Capital Days7633163423-109-3-7168-18-345
ROCE %2%6%8%7%6%7%12%29%11%50%16%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters34.71%34.71%34.71%32.56%25.96%18.59%18.59%18.59%18.59%18.59%18.59%18.59%
FIIs11.43%11.63%12.15%11.83%12.08%12.13%12.29%5.64%5.58%7.84%9.19%9.63%
DIIs16.44%13.44%13.44%13.36%13.36%13.11%12.45%11.76%9.52%9.38%8.19%6.55%
Public37.41%40.22%39.70%42.24%48.59%56.16%56.66%63.99%66.30%64.18%64.02%65.23%
No. of Shareholders2,72,5963,17,9663,29,8883,34,4373,33,6403,45,1233,58,0313,47,6533,82,8463,95,9145,03,5386,41,834

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Infrastructure Fund - Regular Plan6,000,0001.128.31438,6182024-11-161267.93%
Shriram Flexi Cap Fund438,6181.562.07438,6182024-11-160%

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.16-0.192.64-4.031.30
Diluted EPS (Rs.)3.16-0.192.64-4.031.30
Cash EPS (Rs.)3.580.602.07-3.571.06
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.)46.3165.1470.5254.5162.42
PBDIT / Share (Rs.)5.314.188.893.166.09
PBIT / Share (Rs.)4.623.337.972.265.09
PBT / Share (Rs.)4.87-0.651.86-6.161.15
Net Profit / Share (Rs.)2.89-0.241.16-4.460.06
NP After MI And SOA / Share (Rs.)3.16-0.182.64-4.031.30
PBDIT Margin (%)11.476.4112.605.799.76
PBIT Margin (%)9.975.1111.304.148.15
PBT Margin (%)10.50-1.002.64-11.301.84
Net Profit Margin (%)6.23-0.371.64-8.180.09
NP After MI And SOA Margin (%)6.82-0.283.74-7.392.08
Return on Networth / Equity (%)-283.800.00-50.920.00-25.95
Return on Capital Employeed (%)22.138.1851.7917.0729.90
Return On Assets (%)5.27-0.212.81-4.771.61
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 (%)0.630.460.380.220.33
Current Ratio (X)1.161.091.030.960.75
Quick Ratio (X)1.081.020.980.920.70
Interest Coverage Ratio (X)0.980.621.300.471.13
Interest Coverage Ratio (Post Tax) (X)0.550.551.090.590.74
Enterprise Value (Cr.)6370.696212.412624.463422.382753.55
EV / Net Operating Revenue (X)0.900.630.240.410.29
EV / EBITDA (X)7.939.821.957.162.99
MarketCap / Net Operating Revenue (X)0.680.210.220.140.06
Price / BV (X)-28.35-2.90-3.03-0.92-0.79
Price / Net Operating Revenue (X)0.680.210.220.140.06
EarningsYield0.10-0.010.16-0.490.32

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hindustan Construction Company Ltd as of November 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 November 22, 2024, Hindustan Construction Company Ltd is Overvalued by 89.92% compared to the current share price 35.70

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

Intrinsic Value of Hindustan Construction Company Ltd as of November 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 November 22, 2024, Hindustan Construction Company Ltd is Overvalued by 85.04% compared to the current share price 35.70

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

StrengthWeakness
  1. The stock has a low average Working Capital Days of 7.58, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -166.67, which is a positive sign.
  1. The stock has a low average ROCE of 14.58%, which may not be favorable.
  2. The company has higher borrowings (6,681.00) compared to reserves (-471.92), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (8.62) and profit (-57.38).

Stock Analysis

  • 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 Hindustan Construction Company Ltd:
    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: 20.47%)
      • 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: 38.65%)
      • 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: 21.75)
      • 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.
INDUSTRYADDRESSCONTACT
Construction, Contracting & EngineeringHincon House, Lal Bahadur Shastri Marg, Mumbai Maharashtra 400083secretarial@hccindia.com
http://www.hccindia.com
Management
NamePosition Held
Mr. Ajit GulabchandChairman
Mr. Arjun DhawanExecutive Vice Chairman
Mr. Jaspreet BhullarManaging Director & CEO
Mr. Aditya Pratap JainNon Exe.Non Ind.Director
Mr. Santosh JanakiramIndependent Director
Mr. Mahendra Singh MehtaIndependent Director
Dr. Mita DixitIndependent Director
Mr. N R AcharyuluIndependent Director
Mr. Arun KarambelkarIndependent Director
Mr. Mukul SarkarNominee Director

FAQ

What is the latest intrinsic value of Hindustan Construction Company Ltd?

The latest intrinsic value of Hindustan Construction Company Ltd as on 21 November 2024 is ₹3.60, which is 89.92% lower than the current market price of ₹35.70.

What is the Market Cap of Hindustan Construction Company Ltd?

The Market Cap of Hindustan Construction Company Ltd is 5,997 Cr..

What is the current Stock Price of Hindustan Construction Company Ltd as on 21 November 2024?

The current stock price of Hindustan Construction Company Ltd as on 21 November 2024 is ₹35.7.

What is the High / Low of Hindustan Construction Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hindustan Construction Company Ltd stocks is 57.5/26.6.

What is the Stock P/E of Hindustan Construction Company Ltd?

The Stock P/E of Hindustan Construction Company Ltd is .

What is the Book Value of Hindustan Construction Company Ltd?

The Book Value of Hindustan Construction Company Ltd is 1.57.

What is the Dividend Yield of Hindustan Construction Company Ltd?

The Dividend Yield of Hindustan Construction Company Ltd is 0.00 %.

What is the ROCE of Hindustan Construction Company Ltd?

The ROCE of Hindustan Construction Company Ltd is 21.4 %.

What is the ROE of Hindustan Construction Company Ltd?

The ROE of Hindustan Construction Company Ltd is %.

What is the Face Value of Hindustan Construction Company Ltd?

The Face Value of Hindustan Construction Company Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hindustan Construction Company Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE