Hindustan Construction Company Limited
Hindustan Construction Company Limited Fundamental Analysis
Hindustan Construction Company Limited (HCC.BO) shows moderate financial fundamentals with a PE ratio of 18.52, profit margin of 4.52%, and ROE of 24.84%. The company generates $39.6B in annual revenue with weak year-over-year growth of -20.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HCC.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakHCC.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHCC.BO trades at attractive valuation levels.
Growth Score
WeakHCC.BO faces weak or negative growth trends.
Financial Health Score
ModerateHCC.BO shows balanced financial health with some risks.
Profitability Score
WeakHCC.BO struggles to sustain strong margins.
Key Financial Metrics
Is HCC.BO Expensive or Cheap?
P/E Ratio
HCC.BO trades at 18.52 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HCC.BO's PEG of 0.56 indicates potential undervaluation.
Price to Book
The market values Hindustan Construction Company Limited at 3.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.31 times EBITDA. This is generally considered low.
How Well Does HCC.BO Make Money?
Net Profit Margin
For every $100 in sales, Hindustan Construction Company Limited keeps $4.52 as profit after all expenses.
Operating Margin
Core operations generate 22.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.84 in profit for every $100 of shareholder equity.
ROA
Hindustan Construction Company Limited generates $2.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hindustan Construction Company Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Hindustan Construction Company Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
HCC.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How HCC.BO Stacks Against Its Sector Peers
| Metric | HCC.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.52 | 26.71 | Better (Cheaper) |
| ROE | 24.84% | 1311.00% | Weak |
| Net Margin | 4.52% | -29317.00% (disorted) | Weak |
| Debt/Equity | 1.47 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.03 | 10.53 | Neutral |
| ROA | 2.30% | -1537638.00% (disorted) | Weak |
HCC.BO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hindustan Construction Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-45.16%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-47.20%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-77.05%
Industry Style: Cyclical, Value, Infrastructure
Declining