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INVESTMENT INSIGHTS

Check Before You Invest : Hindustan Construction Company Ltd

BSE: 500185 NSE: HCC ISIN: INE549A01026
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

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 Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Hindustan Construction Company Ltd a good buy now?
Hindustan Construction Company Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 5.7% , indicating slower growth.
Q.2 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.3 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.4 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 Historic Median
Gross Profit Margin 10.9 2.1
Operating Profit Margin 19.43 13.64
Net Profit Margin 1.77 1.77
Q.5 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.6 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 historical median of 5.99%, indicating the business is making similar use of its shareholders capital.
Q.7 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 above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Hindustan Construction Company Ltd?
Hindustan Construction Company Ltd Cash conversion cycle is -24 days, below its historical median of -8 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 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.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 0.38 , 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, indicating the business is not able to service its debt comfortably.

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 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 4,801.1 103.6
Gross Profit 523.3 5.2
Operating Profit 933 6
Net Profit 85 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.58 0.63
ROE 5.99 6.64
ROCE 31.79 11.13
Cash Conversion Cycle (days) -23.74 51

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 1.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 1.3% 22.6% 14.5% -18.4%
Q.3 Valuation ratios of Hindustan Construction Company Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 11.64 0.00 27.03
Price to Book 1.47 0.98 1.70
Price to Sales 1.06 0.30 1.45
EV to EBITDA 5.67 9.95 11.36

Check more companies

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3. KEC International
4. Techno Electric &Eng
5. Ircon International
6. Engineers India
7. Afcons Infra
8. Cemindia Projects
9. Waaree Renewables
10. NCC
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