Hindustan Construction Company Intrinsic Value

HCC • Construction
Current Stock Price
₹19.18
Primary Intrinsic Value
₹12.48
Market Cap
₹349.1 Cr
+100.0% Upside
Median Value
₹38.36
Value Range
₹7 - ₹48
Assessment
Trading Below Calculated Value
Safety Margin
50.0%

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
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check HCC share price latest .

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

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