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Last Updated on: 28 February, 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 & ContractingHincon 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

Hindustan Construction Company Ltd. Share Price Update

Share PriceValue
Today₹45.33
Previous Day₹43.81

Basic Stock Data of Hindustan Construction Company Ltd

Market Cap 6,300 Cr.
Current Price 41.6
High / Low47.9/12.5
Stock P/E37.0
Book Value 4.33
Dividend Yield0.00 %
ROCE16.9 %
ROE%
Face Value 1.00

Data Source: screener.in

Competitors of Hindustan Construction Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vipul Ltd 321 Cr. 26.826.8/10.013.3 6.850.00 %3.82 %17.1 % 1.00
Prajay Engineers Syndicate Ltd 172 Cr. 24.626.6/9.80 79.60.00 %0.70 %1.63 % 10.0
NBCC (India) Ltd 24,858 Cr. 138177/31.061.3 10.90.39 %26.4 %19.0 % 1.00
Vascon Engineers Ltd 1,695 Cr. 78.093.2/23.816.9 43.20.31 %11.3 %11.3 % 10.0
RPP Infra Projects Ltd 492 Cr. 130161/38.28.26 1090.00 %12.8 %7.63 % 10.0
Industry Average5,507.60 Cr79.4819.9549.910.14%11.00%11.33%6.40

Rail Vikas Nigam 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 Rs0.781.041.190.920.430.11-1.842.11-1.701.250.35-0.021.20

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
Sales8,1588,5109,66810,3538,5409,86710,13210,5449,4448,24810,6709,8578,888
Expenses7,7558,1298,8309,1087,5009,1039,4019,7638,6007,8579,4979,2808,142
Operating Profit4033818381,2441,0407647317818443911,173577746
OPM %5%4%9%12%12%8%7%7%9%5%11%6%8%
Other Income-65207159164126-37-105-452487-122482474283
Interest8339001,0911,2801,2201,5431,5258088171,0011,0301,0121,004
Depreciation262314307327250206201177152136138129121
Profit before tax-757-627-401-199-304-1,022-1,100-657362-867486-90-96
Tax %21%14%4%-14%-76%4%1%92%46%30%18%69%
Net Profit-602-529-364-208-537-983-1,090-50197-610400-28-18
EPS in Rs-5.87-5.34-3.07-1.66-3.87-5.03-5.39-0.331.30-4.032.64-0.18-0.12
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:1%
5 Years:-1%
3 Years:1%
TTM:-5%
Compounded Profit Growth
10 Years:2%
5 Years:7%
3 Years:%
TTM:136%
Stock Price CAGR
10 Years:15%
5 Years:29%
3 Years:77%
1 Year:215%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Hindustan Construction Company Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital6161616578101102151151151151151151
Reserves700455480459-560-369-1,170-1,151-910-1,469-936-866-807
Preference Capital00000056200000
Borrowings8,7649,96911,15011,8809,4959,7808,8944,1084,2534,7772,0185,5122,583
Other Liabilities4,9494,7276,1116,6066,7187,5578,7607,8028,7079,32212,9318,3838,406
Total Liabilities14,47315,21117,80119,01015,73017,06916,58610,91012,20012,78114,16513,18010,334
Fixed Assets3,2323,2563,2334,4941,8651,7131,729575771866723623553
CWIP2,0412,7173,6453,1351,6961,8901,7141691782100
Investments2021561592736014764171813564185979120
Other Assets8,9989,08210,76311,10811,56812,99012,7269,98510,89511,49613,38212,4779,660
Total Assets14,47315,21117,80119,01015,73017,06916,58610,91012,20012,78114,16513,18010,334

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 Days557633163423-109-3-7168-21-3
ROCE %2%2%6%8%7%6%7%12%29%11%60%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)
HDFC Infrastructure Fund - Regular Plan85490492.2821.8
Motilal Oswal Nifty Microcap 250 Index Fund13565170.714.06
Groww Nifty Total Market Index Fund34850.030.01

Hindustan Construction Company Ltd ROCE Trend

Hindustan Construction Company Ltd EPS Trend

Hindustan Construction Company Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)-0.192.64-4.031.30-2.98
Diluted EPS (Rs.)-0.192.64-4.031.30-2.98
Cash EPS (Rs.)0.602.07-3.571.061.84
Book Value[Excl.RevalReserv]/Share (Rs.)-4.72-5.19-8.71-5.02-6.61
Book Value[Incl.RevalReserv]/Share (Rs.)-4.72-5.19-8.71-5.02-6.61
Revenue From Operations / Share (Rs.)65.1470.5254.5162.4269.68
PBDIT / Share (Rs.)4.188.893.166.096.66
PBIT / Share (Rs.)3.337.972.265.095.48
PBT / Share (Rs.)-0.651.86-6.161.15-3.34
Net Profit / Share (Rs.)-0.241.16-4.460.060.67
NP After MI And SOA / Share (Rs.)-0.182.64-4.031.30-0.32
PBDIT Margin (%)6.4112.605.799.769.55
PBIT Margin (%)5.1111.304.148.157.86
PBT Margin (%)-1.002.64-11.301.84-4.80
Net Profit Margin (%)-0.371.64-8.180.090.96
NP After MI And SOA Margin (%)-0.283.74-7.392.08-0.47
Return on Networth / Equity (%)0.00-50.920.00-25.950.00
Return on Capital Employeed (%)8.1851.7917.0729.9029.74
Return On Assets (%)-0.212.81-4.771.61-0.45
Long Term Debt / Equity (X)-6.79-1.50-1.07-2.09-2.46
Total Debt / Equity (X)-7.41-2.28-2.63-3.94-3.64
Asset Turnover Ratio (%)0.460.380.220.330.33
Current Ratio (X)1.091.030.960.751.03
Quick Ratio (X)1.020.980.920.700.94
Interest Coverage Ratio (X)0.621.300.471.131.25
Interest Coverage Ratio (Post Tax) (X)0.551.090.590.741.78
Enterprise Value (Cr.)6212.412624.463422.382753.555051.12
EV / Net Operating Revenue (X)0.630.240.410.290.47
EV / EBITDA (X)9.821.957.162.995.02
MarketCap / Net Operating Revenue (X)0.210.220.140.060.21
Price / BV (X)-2.90-3.03-0.92-0.79-2.27
Price / Net Operating Revenue (X)0.210.220.140.060.21
EarningsYield-0.010.16-0.490.32-0.02

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 of Hindustan Construction Company Ltd Stock

Fair Value: ₹24.51

The stock is overvalued by 41.08% compared to the current price ₹41.6

*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 8.17, which is a positive sign.
  1. The stock is trading at a high valuation with an average P/B ratio of 4.83 and average Dividend Yield of 7.31%.
  2. The stock has a low average ROCE of 13.92%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 20.25, which may not be favorable.
  4. The company has higher borrowings (43.23) compared to reserves (-472.62), which may suggest financial risk.
  5. The company has not shown consistent growth in sales (8.92) and profit (-242.46).

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