Hindustan Construction Company Intrinsic Value
HCC Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹12.48 | ₹9.98 - ₹14.98 | -34.9% | EPS: ₹1.04, Sector P/E: 12x |
| Book Value Method | asset | ₹47.95 | ₹43.16 - ₹52.75 | +150.0% | Book Value/Share: ₹49.78, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹38.36 | ₹34.52 - ₹42.20 | +100.0% | Revenue/Share: ₹216.04, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹38.36 | ₹34.52 - ₹42.20 | +100.0% | EBITDA: ₹672.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹47.95 | ₹38.36 - ₹57.54 | +150.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹6.66 | ₹5.99 - ₹7.33 | -65.3% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹8.57 | ₹7.71 - ₹9.43 | -55.3% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹38.36 | ₹34.52 - ₹42.20 | +100.0% | ROE: 21.2%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹34.13 | ₹30.72 - ₹37.54 | +77.9% | EPS: ₹1.04, BVPS: ₹49.78 |
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Valuation Comparison Chart
HCC Intrinsic Value Analysis
What is the intrinsic value of HCC?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Hindustan Construction Company (HCC) is ₹38.36 (median value). With the current market price of ₹19.18, this represents a +100.0% variance from our estimated fair value.
The valuation range spans from ₹6.66 to ₹47.95, indicating ₹6.66 - ₹47.95.
Is HCC undervalued or overvalued?
Based on our multi-method analysis, Hindustan Construction Company (HCC) appears to be trading below calculated value by approximately 100.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 2.48 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 8.93 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 21.2% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 15.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.49x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
Related Pages for Hindustan Construction Company
Additional stock information and data for HCC
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹134 Cr | ₹98 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹91 Cr | ₹91 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹16 Cr | ₹16 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹947 Cr | ₹843 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹348 Cr | ₹307 Cr | Positive Free Cash Flow | 8/10 |