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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Hindustan Construction Company Ltd

About the Company - Hindustan Construction Company Ltd

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. Mukul SarkarNominee Director

Basic Stock Data of Hindustan Construction Company Ltd

Last Updated: June 25, 2024, 10:39 pm

Market Cap 8,553 Cr.
Current Price 50.9
High / Low53.4/17.8
Stock P/E
Book Value 1.00
Dividend Yield0.00 %
ROCE21.6 %
ROE%
Face Value 1.00
PEG Ratio0.00

Competitors of Hindustan Construction Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Brigade Enterprises Ltd 31,282 Cr. 1,3531,440/55078.0 1580.15 %12.6 %11.6 % 10.0
Prajay Engineers Syndicate Ltd 203 Cr. 29.031.8/10.4 73.90.00 %5.17 %7.26 % 10.0
Parshwanath Corporation Ltd 15.9 Cr. 50.785.0/30.434.5 36.90.00 %4.20 %4.07 % 10.0
Ansal Properties & Infrastructure Ltd 150 Cr. 9.2815.0/8.00 41.70.00 %%% 5.00
Prestige Estates Projects Ltd 77,240 Cr. 1,9271,998/52156.2 2820.08 %14.9 %12.9 % 10.0
Industry Average7,337.05 Cr309.8837.69143.730.10%13.01%51.26%6.74

Hindustan Construction Company Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,4062,3542,4542,7762,5802,9212,2292,2571,3583,0941,9271,8331,474
Expenses2,0232,2562,2962,4522,2112,5382,2031,9161,5022,7791,6301,5791,236
Operating Profit3839915832436938326341-144315296254239
OPM %16%4%6%12%14%13%1%15%-11%10%15%14%16%
Other Income12388280158161116250741713035199
Interest234330248252263294263248236266246256146
Depreciation36333633345332323232292830
Profit before tax1241241551978747-253312-338187515261
Tax %5%-27%-16%29%26%66%-10%-2%24%-1%-4%161%30%
Net Profit1191571801396416-279319-25819053-3182
EPS in Rs0.710.941.070.830.380.09-1.661.90-1.541.130.31-0.021.09

Last Updated: June 7, 2024, 8:52 am

Hindustan Construction Company Ltd Quarterly Chart

Hindustan Construction Company Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8,1588,5109,66810,3538,5409,86710,13210,5449,4448,24810,6689,8578,328
Expenses7,7558,1298,8309,1087,5009,1039,4019,7638,6007,8579,4809,2807,224
Operating Profit4033818381,2441,0407647317818443911,1885771,104
OPM %5%4%9%12%12%8%7%7%9%5%11%6%13%
Other Income-65207159164126-37-105-452487-122615474434
Interest8339001,0911,2801,2201,5431,5258088171,0011,0361,012914
Depreciation262314307327250206201177152136138129120
Profit before tax-757-627-401-199-304-1,022-1,100-657362-867628-90504
Tax %21%14%4%-14%-76%4%1%92%46%30%10%69%
Net Profit-602-529-364-208-537-983-1,090-50197-610563-28422
EPS in Rs-5.28-4.81-2.76-1.49-3.49-4.53-4.86-0.301.17-3.633.35-0.172.51
Dividend Payout %-0%0%0%0%0%0%0%0%0%0%0%0%

Hindustan Construction Company Ltd Profit & Loss Yearly Chart

Hindustan Construction Company Ltd Growth

Compounded Sales Growth
10 Years:-3%
5 Years:-8%
3 Years:-5%
TTM:-29%
Compounded Profit Growth
10 Years:6%
5 Years:%
3 Years:21%
TTM:83%
Stock Price CAGR
10 Years:1%
5 Years:25%
3 Years:55%
1 Year:107%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: May 31, 2024, 6:24 am

Hindustan Construction Company Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital6161616578101102151151151151151151
Reserves700455480459-560-369-1,170-1,151-910-1,469-810-866-807
Preference Capital00000056200000
Borrowings8,7649,96911,15011,8809,4959,7808,8944,1084,2534,7772,0185,5122,583
Other Liabilities4,9494,7276,1116,6066,7187,5578,7607,8028,7079,32212,8358,3838,406
Total Liabilities14,47315,21117,80119,01015,73017,06916,58610,91012,20012,78114,19413,18010,334
Fixed Assets3,2323,2563,2334,4941,8651,7131,729575771866723623553
CWIP2,0412,7173,6453,1351,6961,8901,7141691782100
Investments2021561592736014764171813564185979120
Other Assets8,9989,08210,76311,10811,56812,99012,7269,98510,89511,49613,41112,4779,660
Total Assets14,47315,21117,80119,01015,73017,06916,58610,91012,20012,78114,19413,18010,334

Hindustan Construction Company Ltd Reserves and Borrowings Chart

Hindustan Construction Company Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -863274070287481,44118353834894717
Cash from Investing Activity -542-996-1,270-843180-5971-5-18-83-208447
Cash from Financing Activity 844482470-181-39746-1,336-312-514101-660-603
Net Cash Flow294118-60-322-13134176-133536679-139

Hindustan Construction Company Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days31292826258589123731997281
Inventory Days1,3521,2082,0072,4428761,093813283201
Days Payable7544256561,2481,0731,4511,1851,2291,301
Cash Conversion Cycle6298121,3791,220-172-273-282-824-1,0271997281
Working Capital Days557633163423-109-3-7168-18-3
ROCE %2%2%6%8%7%6%7%12%29%11%50%17%

Hindustan Construction Company Ltd Financial Efficiency Indicators Chart

Hindustan Construction Company Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters34.71%34.71%34.71%34.71%34.71%32.56%25.96%18.59%18.59%18.59%18.59%18.59%
FIIs11.21%11.31%11.43%11.63%12.15%11.83%12.08%12.13%12.29%5.64%5.58%7.84%
DIIs18.95%18.92%16.44%13.44%13.44%13.36%13.36%13.11%12.45%11.76%9.52%9.38%
Public35.13%35.06%37.41%40.22%39.70%42.24%48.59%56.16%56.66%63.99%66.30%64.18%
No. of Shareholders2,52,2822,60,7622,72,5963,17,9663,29,8883,34,4373,33,6403,45,1233,58,0313,47,6533,82,8463,95,914

Hindustan Construction Company Ltd Shareholding Pattern Chart

No. of Hindustan Construction Company Ltd Shareholders

Hindustan Construction Company Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Infrastructure Fund - Regular Plan8,549,0492.2821.81,356,5172024-06-23530.22%
Motilal Oswal Nifty Microcap 250 Index Fund1,356,5170.714.061,356,5172024-06-230%
Groww Nifty Total Market Index Fund3,4850.030.011,356,5172024-06-23-99.74%

Hindustan Construction Company Ltd ROCE Trend

Hindustan Construction Company Ltd EPS Trend

Hindustan Construction Company Ltd 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)-12.62-7.41-2.28-2.63-3.94
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
Inventory Turnover Ratio (X)1.860.000.000.000.00
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.)6387.876212.412624.463422.382753.55
EV / Net Operating Revenue (X)0.910.630.240.410.29
EV / EBITDA (X)7.959.821.957.162.99
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

Hindustan Construction Company Ltd Profitability Ratios (%)

Hindustan Construction Company Ltd Liquidity Ratios

Hindustan Construction Company Ltd Liquidity Ratios (%)

Hindustan Construction Company Ltd Interest Coverage Ratios (%)

Hindustan Construction Company Ltd Valuation Ratios

Fair Value

Fair Value: 2.30

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.

Overvalued: 95.49% compared to the current price 50.9

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

Intrinsic Value: 2.67

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 94.75% compared to the current price ₹50.9

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

Last 5 Year EPS CAGR: 16.49%

*Investments are subject to market risks

Strength and Weakness of Hindustan Construction Company Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of 8.42, which is a positive sign.
  1. The stock has a low average ROCE of 13.08%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 20.25, which may not be favorable.
  3. The company has higher borrowings (43.23) compared to reserves (-462.92), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (8.92) and profit (-185.38).

FAQ

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

The latest fair value of Hindustan Construction Company Ltd is ₹2.29.

What is the Market Cap of Hindustan Construction Company Ltd?

The Market Cap of Hindustan Construction Company Ltd is 8,553 Cr..

What is the current Stock Price of Hindustan Construction Company Ltd as on 25 June 2024?

The current stock price of Hindustan Construction Company Ltd as on 25 June 2024 is ₹50.9.

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 53.4/17.8.

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 1.00.

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 21.6 %.

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