Hindustan Construction Company Ltd Stock Analysis

BSE: 500185 | NSE: HCC | Engineering - Construction | Small Cap

BSE Share Price 26-May-2023 18:01
17.92 0.56 (3.23%)

DeciZen - Make an Informed Decision on HCC

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

HCC Price Chart

P/E Ratio ( SA) :
10.70
Market Cap :
2,711.4 Cr.
52-wk low :
10.5
52-wk high :
22.7
Bole Toh?

1. Is Hindustan Construction Company Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Hindustan Construction Company Ltd is a average quality company.

2. Is Hindustan Construction Company Ltd undervalued or overvalued?

The key valuation ratios of Hindustan Construction Company Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Hindustan Construction Company Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Hindustan Construction Company Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of HCC:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Hindustan Construction Company Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 3.9%8.6%8.5%9.2%8.9%8.1%-25.9%7.8%4.3%16%-
Value Creation Index -0.7-0.4-0.4-0.3-0.4-0.4-2.9-0.4-0.70.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,8374,0434,1354,1914,1964,5754,6033,6472,5904,6665,222
YoY Gr. Rt. %-5.4%2.3%1.4%0.1%9%0.6%-20.8%-29%80.2%-
Adj EPS -2.31.311.40.70.8-12.8-1.1-2.6-11.7
YoY Gr. Rt. %-NA-17.5%29.8%-48.9%8.7%-1806.7%NANANA-
BVPS (₹) 17.218.519.320.823.924.597.843.14.8
Adj Net Profit -15785.175.21177885.3-1,936-163-386-156253
Cash Flow from Ops. 3425033833396391,318571314-97.2645-
Debt/CF from Ops. 13.69.613.114.86.92.85.810.7-40.72.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 2.2%2.2%0.5%80.2%
Adj EPS NA-208.3%NANA
BVPS -17.3-33.5-29.8-23.3
Share Price 4.2% 5% 59.6% 34.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % -12.875.77.43.53.1-93.8-12.9-43.1-28.842.5
Op. Profit Mgn % 9.915.91919.41814.312.912.811.616.913.6
Net Profit Mgn % -4.12.11.82.81.91.9-42.1-4.5-14.9-3.34.8
Debt to Equity 43.93.62.81.61.32.42.96.52.92.5
Working Cap Days 6776296547237907696878041,132518245
Cash Conv. Cycle 30224820452-423181741818828

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 42.50%

Debt to equity has declined versus last 3 years average to 2.87

Sales growth is good in last 4 quarters at 11.99%

Sales growth has been subdued in last 3 years 0.45%

Latest Financials - Hindustan Construction Company Ltd.

Standalone Consolidated
TTM EPS (₹) 1.7 -0.2
TTM Sales (₹ Cr.) 5,222 9,857
BVPS (₹.) 4.8 -5.4
Reserves (₹ Cr.) 570 -972
P/BV 3.76 -3.30
PE 10.70 0.00
From the Market
52 Week Low / High (₹) 10.54 / 22.70
All Time Low / High (₹) 0.41 / 125.11
Market Cap (₹ Cr.) 2,711
Equity (₹ Cr.) 151.3
Face Value (₹) 1
Industry PE 29.4

Management X-Ray of HCC :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *92.1492.1492.1492.1492.1492.1491.6289.4985.3285.32
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of HCC

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Hindustan Construction Company Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HCC on 26-May-2023 18:01 is : 17.92.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 26-May-2023 18:01 the market cap of HCC stood at ₹ 2,711.4.
The latest PE ratio of HCC as of 26-May-2023 18:01 is 10.70.
The latest PB ratio of HCC as of 26-May-2023 18:01 is 3.76
The 52-week high of HCC is ₹ 22.70 and the 52-week low is ₹ 10.54.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of HCC is ₹ 5,222 ( Cr.) .

About Hindustan Construction Company Ltd

Hindustan Construction Company is a pre-eminent Indian infrastructure company, it was incorporated over eight decades ago. The HCC Group of companies comprise HCC Ltd (Engineering & Construction), HCC Infrastructure Ltd, HCC Real Estate Ltd (HREL) and Lavasa Corporation Ltd. The group specializes in technically complex, new-age infrastructure projects, as well as EPC, BOT, Integrated Projects and Townships.

HCC has, over the years, strongly anchored itself to India’s development efforts. It is now acknowledged as a company that continues to empower India, enabling the nation to surge ahead in different core sectors. At the heart of all development efforts is the attempt to touch and improve the quality of life of people across the length and breadth of the country.

HCC, as an industry leader in engineering construction, currently nurtures projects that span across such diverse segments as transportation, power, marine projects, oil and gas pipeline constructions, irrigation and water supply, utilities and urban infrastructure, all of which impact the nation of India, and the progress of its people.

This company with focus towards empowering the nation, currently spans across construction, real estate and infrastructure development fields, which form part of the backbone of any nation building effort.

The company has executed a majority of India’s landmark infrastructure projects, having constructed more than 25% of India’s hydro power, and over 50% of India’s nuclear power generation capacities, 2,227 km of roads and expressways and over 200 km of complex tunneling in addition to hundreds of bridges, dams and barrages.

HCC has remained at the forefront of India’s engineering construction industry with global management practices, which include acquiring international ISO certifications for management systems in Quality, Occupational Health & Safety and Environment. In fact, Environment Management is a key focus area for the company and it is implementing various initiatives through the government recognized Centre for Research and Development and Innovation (CRDI), such as use of fly ash in concrete that helps reduce carbon emissions and innovative techniques in pipeline joint testing.

Having established robust corporate governance norms, the company has also set global benchmarks in the construction industry with the fastest implementation of SAP-ERP coupled with high levels of complexity across 28 diverse project locations. The complex implementation of ERP at HCC’s hydroelectric projects under construction at altitudes of more than 11,000 feet in Leh, Jammu and Kashmir, remains the highest location of SAP-ERP operations in the world.

The company is only Indian signatory member of the United Nations’ CEO Water Mandate, which involves water management projects at grass root levels.

Subsidiary companies

  • HCC Infrastructure Ltd, a wholly-owned subsidiary of HCC Ltd, is engaged in developing infrastructure projects in growing sectors such as transportation; namely roads, bridges.
  • HCC Real Estate Ltd (HREL) is a 100% subsidiary of Hindustan Construction Company Ltd. (HCC). With inherent skills and resources to develop and execute high-value projects within  stringent compliances, HREL is helping build communities across India. HREL is proud to touch the lives of many.

Core Business:

HCC executes the construction of technically complex and high value projects across segments such as transportation, power, marine projects, oil and gas pipeline constructions, irrigation and water supply, utilities and urban infrastructure. These projects exhibit HCC’s premier trademark -- which is quality, excellence, and precision, turning them into engineering and construction marvels in their respective categories.1) Hydro  business Unit 2) Nuclear Power & Special projects Business Unit 3) EPC business Unit 4) Water Solution Business Unit and 5) Transportation Business Unit.

Milestones:

  • Feb 10, 2010: The company bags three contracts worth Rs 2,860 crore from National Highways Authority of India (NHAI)
  • Mar 04, 2010: Secures two orders worth Rs 299.36 crore from Hindalco Industries
  • Mar 12, 2010: HCC, in joint venture (JV) with Coastal Projects (CPP), secures orders worth Rs 197 crore from North Frontier Railway
  • May 06, 2010: Completes acquisition of 66% stake in Karl Steiner AG
  • May 13, 2010: Launch of Highbar Tech to tap IT opportunities in the Infra industry
  • May 25, 2010: Secures project from Nuclear Power Corp worth Rs 888 crore
  • June 08, 2010: Company’s arm signs MoU with Orascom Construction
  • June 10, 2010: The company sells its 74% stake in ‘247Park’ to IL&FS Milestone Fund
  • June 25, 2010: Secures EPC contract from Himachal Pradesh Power Corporation
  • June 28, 2010: Wins contract worth of Rs 126 crore from Hindalco Inds
  • Aug 10, 2010: Secures Rs 121.86 crore worth order from Hindalco Inds
  • Aug 23, 2010: The company’s wholly-owned subsidiary HCC Infrastructure mulls entering airport operation and building business
  • Sept 09, 2010: HCC, CPPL bags tunnel work worth Rs 312.82 crore
  • Sept 24, 2010: The company bags Rs 660 crore worth order from GMR Hydro Power
  • Dec 06, 2010: Signs two agreements with VINCI affiliates to jointly work on power and infrastructure Projects
  • Jan 12, 2010: The company inks MoU with Gujarat government at the Vibrant Gujarat Summit for an investment of Rs 12000 crore
  • Jan 13, 2010: The company enters the renewable energy sector
  • Feb 02, 2010: Secures Rs 345.30 crore EPC contract from Sardar Sarovar Nigam

Awards & Achievements:-

  • FY2009 -- Infrastructure Leader of the Year to Ajit Gulabchand under Infrastructure Excellence Awards 2009 in association with CNBC TV18.
  • Best Concrete Structure Award for the year
  • 2007-2008 -- To Gosikhurd Spillway Project, the award is conferred by the India Concrete Institute
  • Most Outstanding Bridge National Award for the year 2008 for the Bandra Worli Sea Link Project by an independent jury of bridge engineering experts from the Indian Institution of Bridge Engineers (IIBE).
  • FY2007 -- Golden Peacock Award for Excellence in Corporate Governance - 2007 conferred by the Institute of Directors (IOD), under the Chairmanship of Justice P N Bhagwati, former Chief Justice of India and Member of Human Rights Commission
  • Demo JAM - SAP Summit 2007: 1st prize for best innovation at handling Construction Aids (CONA) material in SAP implementation, etc.

Future Plan:

The company’s real estate subsidiary, HREL, is currently developing a state-of-the-art IT Park at Mumbai as well as free India’s largest Hill City, Lavasa, a three-hour drive away from Mumbai.

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