Why is Hindustan Construction Company Ltd ?
1
High Debt Company with a Debt to Equity ratio (avg) at 0.62 times
- Poor long term growth as Net Sales has grown by an annual rate of -13.60% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 0.62 times
- 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 Dec 25
- ROCE(HY) Lowest at 19.58%
- DEBTORS TURNOVER RATIO(HY) Lowest at 2.35 times
- NET SALES(Q) Lowest at Rs 925.32 cr
4
Stock is technically in a Mildly Bearish range
- The technical trend has deteriorated from Sideways on 11-May-26
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
How 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, Low Return
Absolute
Risk Adjusted
Volatility
Hind.Construct.
-11.86%
-0.46
51.91%
Sensex
-4.95%
-0.49
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
-13.60%
EBIT Growth (5y)
16.38%
EBIT to Interest (avg)
0.87
Debt to EBITDA (avg)
3.63
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
3.36
Tax Ratio
25.77%
Dividend Payout Ratio
0
Pledged Shares
79.74%
Institutional Holding
15.05%
ROCE (avg)
-67.33%
ROE (avg)
1.71%
Valuation Key Factors 
Factor
Value
P/E Ratio
49
Industry P/E
47
Price to Book Value
3.37
EV to EBIT
14.11
EV to EBITDA
13.42
EV to Capital Employed
2.98
EV to Sales
1.91
PEG Ratio
0.40
Dividend Yield
NA
ROCE (Latest)
21.11%
ROE (Latest)
6.85%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
7What is working for the Company
PAT(Latest six months)
At Rs 36.02 cr has Grown at 44.04%
-10What is not working for the Company
ROCE(HY)
Lowest at 19.58%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.35 times
NET SALES(Q)
Lowest at Rs 925.32 cr
Loading Valuation Snapshot...
Here's what is working for Hind.Construct.
Profit After Tax (PAT) - Latest six months
At Rs 36.02 cr has Grown at 44.04%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Here's what is not working for Hind.Construct.
Net Sales - Quarterly
Lowest at Rs 925.32 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 925.32 cr has Grown at -8.09%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 2.35 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio