ScoreWhy is Hindustan Construction Company Ltd ?
1
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.87
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.87
- The company has been able to generate a Return on Equity (avg) of 1.71% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -13.60% over the last 5 years
3
Negative results in Jun 26
- PBT LESS OI(Q) At Rs 12.32 cr has Fallen at -73.21%
- PAT(Latest six months) At Rs 110.02 cr has Grown at -21.87%
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 458.39 cr
4
With ROCE of 21.1, it has a Attractive valuation with a 2.3 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -5.44%, its profits have risen by 140.1% ; the PEG ratio of the company is 0.3
5
82.43% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
- The proportion of pledged holdings has increased by 2.69% over the last quarter
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Hind.Construct. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Hind.Construct.
-5.44%
-0.11
48.05%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-15.57%
EBIT Growth (5y)
0.11%
EBIT to Interest (avg)
0.89
Debt to EBITDA (avg)
3.63
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
3.36
Tax Ratio
25.97%
Dividend Payout Ratio
0
Pledged Shares
82.43%
Institutional Holding
15.08%
ROCE (avg)
-67.33%
ROE (avg)
1.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
44
Price to Book Value
2.53
EV to EBIT
12.38
EV to EBITDA
11.82
EV to Capital Employed
2.28
EV to Sales
1.50
PEG Ratio
0.28
Dividend Yield
NA
ROCE (Latest)
21.11%
ROE (Latest)
6.85%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
OPERATING CF(Y)
Highest at Rs 892.00 Cr
-10What is not working for the Company
PBT LESS OI(Q)
At Rs 12.32 cr has Fallen at -73.21%
PAT(Latest six months)
At Rs 110.02 cr has Grown at -21.87%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 458.39 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.76 times
NET SALES(Q)
At Rs 993.42 cr has Grown at -8.97%
NON-OPERATING INCOME(Q)
is 83.44 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Hind.Construct.
Operating Cash Flow - Annually
Highest at Rs 892.00 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Here's what is not working for Hind.Construct.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 12.32 cr has Fallen at -73.21%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Latest six months
At Rs 110.02 cr has Grown at -21.87%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 993.42 cr has Grown at -8.97%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Non Operating Income - Quarterly
is 83.44 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 458.39 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 1.76 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 62.08 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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