Hindustan Construction Company (500185) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Hindustan Construction Company ₹16.45, price ₹20.24, upside -18.7%, quality 35 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range ₹7.44 – ₹46.86 · fair‑value band ₹11.72 – ₹19.54 · the ₹20.24 price screens above the ₹16.45 fair value. Dashed = 300-day average. As of Sep 24, 2026.
Hindustan Construction Company Limited, together with its subsidiaries, primarily provides engineering and construction services in India.
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Hindustan Construction Company Limited, together with its subsidiaries, primarily provides engineering and construction services in India. It constructs dams, barrages, surface and underground power houses, and water conductor systems, such as tunnels, shafts, penstocks, etc.; and thermal power and nuclear plants, as well undertakes hydro power projects on EPC basis. The company also undertakes irrigation projects comprising canals and lift irrigation projects; and integrated water supply and sanitation projects, such as water and sewage treatment plants, and bulk water transmission projects. In addition, it is involved in building transportation projects, including transport systems, bridges, highways, roads; and rail bridges, metro lines, underground/semi-underground railway station buildings, and support infrastructure, such as rail coach factories, as well as constructs ports and harbors on EPC basis. Further, the company constructs process plants, ancillary buildings, factories, workshops, and pumping stations, as well as develops and constructs residential, commercial, and institutional buildings, and smart cities and townships; and engages in real estate development activities. Additionally, it provides insurance auxiliary services, as well as information technology consulting, toll management, aircraft, hospitality, power development, entertainment, educational, adventure sports, hostel, tourism, and parking services; and operates watersport operations, wineries, and clubs. The company also engages in the manufacture and sale of bamboo articles; retail and leasing businesses; and city management activities. Hindustan Construction Company Limited was founded in 1926 and is based in Mumbai, India.
Stock analysis
Hindustan Construction Company (500185) currently trades at ₹20.24, while our model-based Fair Value estimate is ₹16.45, 18.7% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ₹15.63 per share, and 9 of the 22 models we run sit above the ₹20.24 price.
Bear case: the Asset-Based group reads lowest at ₹4.01, and 13 of the 22 models stay below the price. Evidence for this calculation is low.
Scenario range: ₹11.72 (bear) to ₹19.54 (bull), the price of ₹20.24 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 35/100 (below-average quality), in the Industrial Goods sector.
Mixed Growth: Spin-off in 2024: revenue and profit before it include the divested business. Growth is measured afresh from 2024.
Hindustan Construction Company reported revenue of ₹56.0B in FY2025 versus ₹82.5B in FY2021, a compound −9.2%/yr. Reported net income was ₹1.1B in FY2025.
Key figures
Market cap ₹7.6B (≈ $79.2M) · P/E ratio 3.0 · P/S ratio 0.06 · EPS (TTM) ₹1.88 · Net margin 2.0% · Return on assets (EBIT) 9.4% · Operating margin 3.7% · Revenue (TTM) ₹83.1B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (low confidence).
What moves the price
The share trades about 27% below its 52-week high and 47% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrial Goods peers we cover trades at −11% fair-value upside, at −19%, 500185 screens richer than that median.
Fair Value models
Bear ₹11.72Fair Value ₹16.45Bull ₹19.54
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then (₹1.88 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.55/100
Spin-off in 2024: revenue and profit before it include the divested business. Growth is measured afresh from 2024.
What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+7.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+7.5%
Dividend (yield on the price)0.0%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.10% → 21%
⚠ Revenue per share shrinking 12.6%/yr over ~6Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Compare Hindustan Construction Company with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “General Contractors” was too small, so the broader sector is used.)Industrials · 5328 stocks
Beats the sector median on 2/9 measures
Overall it trails its sector peers.
Valuation
Quality Score35 · Bottom 25%
Fair Value upside−42.3% · Below median
Profitability
Return on assets2.4% · Below median
Net margin (TTM)−3.8% · Bottom 25%
Operating margin (TTM)3.7% · Below median
Growth and dividend
Revenue growth−31.8% · Bottom 25%
Balance sheet
Debt / equity1.15× · Highest 25%
Valuation Multiplesvs Industrials median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Hindustan Construction Company Fair Value". https://www.fairvalue-calculator.com/stock/500185
Frequently asked questions
Is Hindustan Construction Company (500185) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of ₹16.45 versus a price of ₹20.24, about −19% upside (overvalued).
What is the fair value of 500185?
Our model-based fair value for Hindustan Construction Company is ₹16.45 (as of Sep 24, 2026), built from audited fundamentals. The current price: ₹20.24.
What is the quality score of 500185?
Hindustan Construction Company has a Quality Score of 35/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Hindustan Construction Company (500185)?
Our model-based price target is the fair value of ₹16.45 (as of Sep 24, 2026) from 22 valuation models. Cautious scenario ₹11.72, optimistic scenario ₹19.54. It is a calculation from audited fundamentals, not an analyst target.
What is the Hindustan Construction Company stock forecast for 2026?
Our models put fair value at ₹16.45, about −19% upside versus a price of ₹20.24 (overvalued). Cautious scenario ₹11.72, optimistic scenario ₹19.54. The calculation is refreshed regularly with new filings.
What is the revenue of Hindustan Construction Company (500185)?
Hindustan Construction Company reported trailing-twelve-month revenue of about ₹83.1B (latest available figure, as of Sep 24, 2026).
What is the intrinsic value of Hindustan Construction Company (500185)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Hindustan Construction Company it is ₹16.45 per share (as of Sep 24, 2026), against a price of ₹20.24. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Hindustan Construction Company stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 500185 trades above its calculated fair value: price ₹20.24, fair value ₹16.45, a gap of about −19% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 500185?
No. The price is what the market pays today (₹20.24); the fair value is what the company's own numbers justify (₹16.45). For Hindustan Construction Company the two are ₹3.79 per share apart. That gap is exactly why we show both numbers side by side.
How much is Hindustan Construction Company worth?
The market values Hindustan Construction Company at about ₹7.6B (market capitalisation, as of Sep 24, 2026). Per share that is ₹20.24; our models calculate a fair value of ₹16.45 per share.
What do the bullish and bearish scenarios say about 500185?
Our models span a range for Hindustan Construction Company: cautious scenario ₹11.72, base ₹16.45, optimistic ₹19.54 per share (as of Sep 24, 2026, price ₹20.24). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 500185?
Hindustan Construction Company trades at a price-to-earnings ratio of 3.0 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹16.45 is built from several models across several years. Other multiples: EV/EBITDA 1.7.
How solid is the balance sheet of Hindustan Construction Company (500185)?
Balance-sheet figures for Hindustan Construction Company (as of Sep 24, 2026): debt of 1.15 per unit of equity. They feed the Quality Score of 35/100, which measures business quality independently of the share price.
How far is 500185 from its 52-week high?
Hindustan Construction Company trades at ₹20.24, about 27% below its 52-week high of ₹27.84 and 47% above the low of ₹13.73 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹16.45 is for.
Which stocks are comparable to Hindustan Construction Company?
From the same area (Industrial Goods) we also value Raymond Limited, FRONTSP, DISAQ, BATLIBOI, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Hindustan Construction Company stock attractive at the current price?
The data as of Sep 24, 2026: price ₹20.24, calculated fair value ₹16.45 (−19%), Quality Score 35/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 500185 calculated?
We run Hindustan Construction Company through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹16.45, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Hindustan Construction Company itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Hindustan Construction Company (500185)?
The closing price on Oct 1, 2026 was ₹20.24. Our model-based fair value is ₹16.45, about −19% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Hindustan Construction Company right now?
The price sits above even our optimistic bull case (₹19.54). The favourable scenario is already priced in. Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
Key figures of Hindustan Construction Company
How large is the market capitalisation of Hindustan Construction Company (500185)?
The market capitalisation of Hindustan Construction Company is ₹7.6B (≈ $79.2M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Hindustan Construction Company (500185)?
The price-to-sales ratio of Hindustan Construction Company is 0.06 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Hindustan Construction Company (500185)?
Earnings per share at Hindustan Construction Company are ₹1.88 (price ÷ EPS = P/E 3.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Hindustan Construction Company (500185)?
The net margin of Hindustan Construction Company is 2.0% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the EBIT return on assets of Hindustan Construction Company (500185)?
On an EBIT basis the return on assets of Hindustan Construction Company is 9.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Hindustan Construction Company (500185)?
The operating margin of Hindustan Construction Company is 3.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Hindustan Construction Company (500185)?
Revenue at Hindustan Construction Company is growing −31.8% versus a year earlier (3y avg −19.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
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