Check Before You Invest : Hindustan Construction Company Ltd

Snapshot

Q.1 Which industry/sub-sector does Hindustan Construction Company Ltd belong to?

Hindustan Construction Company Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Hindustan Construction Company Ltd a good quality company?

Hindustan Construction Company Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Hindustan Construction Company Ltd undervalued or overvalued?

Hindustan Construction Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Hindustan Construction Company Ltd a good buy now?

Hindustan Construction Company Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Hindustan Construction Company Ltd?

Hindustan Construction Company Ltd revenue growth is -4.8% for FY-2025, which is below its 5-year CAGR of 5.65%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Hindustan Construction Company Ltd?

Hindustan Construction Company Ltd Return on capital employed is 31.79% for FY-2025, which is in line with its 5-year historical median of 31.79%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Hindustan Construction Company Ltd?

Hindustan Construction Company Ltd Return on Asset is 1.03%, which is in line with its 5-year historical median of 1.03%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Hindustan Construction Company Ltd?

Hindustan Construction Company Ltd Return on equity is 5.99% for FY-2025, which is in line with its 5-year historical median of 5.99%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Hindustan Construction Company Ltd?

Hindustan Construction Company Ltd Cash conversion cycle is -24 days, below its 5-year historical median of -8 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.58	0.56
ROE	5.99	5.99
ROCE	31.79	31.79
Cash Conversion Cycle	-24 days	-8 days

Q.6 Gross Profit margin of Hindustan Construction Company Ltd?

Hindustan Construction Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.9% for FY-2025, which is above its 5-year median of 2.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Hindustan Construction Company Ltd?

Hindustan Construction Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.43% for FY-2025, which is above its 5-year median of 13.64% indicating increasing margins.

Q.8 Net Profit Margin of Hindustan Construction Company Ltd?

Hindustan Construction Company Ltd Net Profit Margin is 1.77% for FY-2025, is in line with with its 5-year median of 1.77%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	10.9	2.1
Operating Profit Margin	19.43	13.64
Net Profit Margin	1.77	1.77

Q.9 Debt to Equity ratio of Hindustan Construction Company Ltd?

Hindustan Construction Company Ltd Debt-to-Equity ratio is 0.79, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Hindustan Construction Company Ltd?

Hindustan Construction Company Ltd Debt to cash flow from operations is 20.21, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hindustan Construction Company Ltd?

Promoters hold 16.72% of the Hindustan Construction Company Ltd, with 79.74% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hindustan Construction Company Ltd vs industry peers?

Hindustan Construction Company Ltd revenue CAGR is 5.65%, compared to the industry median CAGR of 9.45%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-4.8	9.5
Gross Profit Growth	95.2	14.9
Operating Profit Growth	35.8	11.1
Net Profit Growth	-52.5	18.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.58	0.68
ROE	5.99	8.34
ROCE	31.79	11.34
Cash Conversion Cycle (days)	-23.74	57

Valuation & price assessment

Q.1 Stock return of Hindustan Construction Company Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	4.7%	29.4%	19.1%	4.7%

Q.3 Valuation ratios of Hindustan Construction Company Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	15.04	30.69	21.62
Price to Book	2.72	4.21	1.75
Price to Sales	1.37	0.77	1.50
EV to EBITDA	7.04	7.16	11.53

Check more companies

1. IRB Infra.&Developer

2. Kalpataru Projects

3. Cemindia Projects

4. KEC International

5. Techno Electric &Eng

6. Engineers India

7. Ircon International

8. Afcons Infra

9. Waaree Renewables

10. NCC

Check trending companies

1. Sheela Foam Ltd.

2. TVS Motor Company Ltd.

3. Pidilite Industries Ltd.

4. Netweb Technologies India Ltd.

5. Gabriel India Ltd.