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Hindustan Construction Company (HCC) Fair Value & Analysis

Industrials · IN · Market cap ₹55.6B (≈ $589M) · ISIN INE549A01026

What is Hindustan Construction Company really worth?

HC Hindustan Construction Company HCC · BSE
Price₹23.00
Fair Value₹13.27
Upside−42.3%
Quality46/100

Below-average quality, and trading another 73% above our fair value of ₹13.27.

As of Aug 21, 2026, the fair value of Hindustan Construction Company is ₹13.27 per share against a price of ₹23.00, so the fair value sits 42% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y −14.5 %/yr)
!Thin margins · 3.4% net margin
!Trails peers (5/13)
!Moderate moat 47/100
!Evidence only low, so the estimate is less certain
!Weak on dividend: 6 out of 100
Evidence: Low Range ₹9.95 – ₹16.59

Fair value as of: Aug 21, 2026

From 24 valuation models · updated 16 days ago

Share price +4.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹16.59). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

₹55.69 ₹8.31 Fair Value ₹13.27 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range ₹8.31 – ₹55.69 · fair‑value band ₹9.95 – ₹16.59 · the ₹23.00 price screens above the ₹13.27 fair value. Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

Hindustan Construction Company (HCC) currently trades at ₹23.00, while our model-based Fair Value estimate is ₹13.27, implying the stock looks roughly 73.3% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of ₹23.23 per share, and 7 of the 24 models we run sit above the ₹23.00 price. Bear case: the Earnings-Based group reads lowest at ₹5.25, and 17 of the 24 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Hindustan Construction Company generated revenue of ₹44.3B at a net margin of 3.4%. Revenue declined 31.7% year over year. It earns a return on equity of 22.1%. Net debt stands at ₹6.4B. Fundamentals as of Aug 21, 2026

Our scenario range runs from ₹9.95 (bear case) to ₹16.59 (bull case); at ₹23.00, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 23% below its 52-week high and 69% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −42%, HCC screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹0.3049 per share, which is 2.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
FCF DCF best evidence ₹29.06 ₹40.87 ₹62.74 80
Growth DCF ₹30.46 ₹41.92 ₹61.53 78
5Y EBITDA Exit ₹17.42 ₹23.23 ₹30.94 76
All 24 models by family
DCF Models
FCF DCF best evidence ₹29.06 ₹40.87 ₹62.74 80
Owner Earnings ₹3.13 ₹4.75 ₹7.77 75
5Y Revenue Exit ₹16.88 ₹22.30 ₹30.12 73
5Y EBITDA Exit ₹17.42 ₹23.23 ₹30.94 76
5Y P/E Exit ₹15.80 ₹20.43 ₹26.05 72
10Y Revenue Exit ₹21.14 ₹25.61 ₹30.13 68
10Y EBITDA Exit ₹21.76 ₹26.18 ₹30.61 70
10Y P/E Exit ₹20.78 ₹24.45 ₹27.74 65
Earnings-Based
Graham-Dodd ₹4.30 ₹5.25 ₹5.91 67
EPV ₹8.33 ₹9.89 ₹11.25 74
Dividend Discount
Gordon GGM ₹0.0100 ₹0.0100 ₹0.0100 69
DDM Multi-Stage ₹0.0100 ₹0.0100 ₹0.0100 67
Multiples
P/E Multiple ₹9.95 ₹13.27 ₹16.59 63
P/S Multiple ₹8.06 ₹10.74 ₹13.43 58
P/B Multiple ₹8.06 ₹10.74 ₹13.43 55
EV/EBIT ₹14.68 ₹19.92 ₹25.15 66
EV/EBITDA ₹12.01 ₹16.35 ₹20.70 67
EV/Revenue ₹10.19 ₹14.99 ₹19.79 53
Asset-Based
NCAV (Graham) ₹4.06 ₹5.44 ₹8.12 54
Growth DCF
Growth DCF ₹30.46 ₹41.92 ₹61.53 78
Rev-Margin DCF ₹16.88 ₹23.01 ₹30.81 73
Economic Profit
Residual Income ₹6.68 ₹7.11 ₹8.00 76
ROIC Compounder ₹8.33 ₹10.11 ₹12.10 72
Growth Earnings
Growth-Adj P/E ₹7.03 ₹10.04 ₹13.05 67

Widest divergence: DCF Models (₹23.23) versus Dividend Discount (₹0.0100). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 32.9
P/S ratio 1.48 P/E × margin
EPS (TTM) ₹0.7000 price ÷ EPS = P/E 32.9
Net margin 4.5% FY2026
Return on equity 22.1% TTM
Return on assets (EBIT) 4.2% avg 5y
More key figures
Profitability
Operating margin 14.8% TTM
Growth
Revenue (TTM) ₹44.3B TTM
Revenue growth (YoY) −31.7% 3y avg −28.1%
EPS growth (YoY) −31.7%
Balance sheet & cash flow
Free cash flow ₹8.1B FY2026
Net debt ₹6.4B FY2026 · ≈ 0.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 45 · Market factors (momentum, volatility) 48

Profitability 29
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 92
Earnings quality: real cash, not paper profit
Fin. Strength 25
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 36
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hindustan Construction Company Limited provides engineering and construction services in India and internationally. The company constructs roads, highways, expressways, bridges, elevated corridors, railways, metro rails, ports, and marine structures; dams, barrages, tunnels, powerhouses, shafts, and various underground works; and reactors, auxiliary …

Full company description

Hindustan Construction Company Limited provides engineering and construction services in India and internationally. The company constructs roads, highways, expressways, bridges, elevated corridors, railways, metro rails, ports, and marine structures; dams, barrages, tunnels, powerhouses, shafts, and various underground works; and reactors, auxiliary buildings, spent fuel buildings, safety pump houses, and control buildings. It constructs integrated water supply systems, bulk water transmission projects, dams, barrages, irrigation, water treatment and sewage treatment plants, and aqueducts; and hydrocarbon, metals and process plants and factories, residential and commercial buildings, institutional buildings, and station buildings. In addition, the company offers toll management, insurance auxiliary, real estate development, and information technology consulting, as well as services related to recovering, assessing, managing claims, awards, etc. Hindustan Construction Company Limited was incorporated in 1926 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Hindustan Construction Company reported revenue of ₹36.6B in FY2026 versus ₹102B in FY2022, a compound −22.6%/yr. Reported net income was ₹1.7B in FY2026, compounding −19.8%/yr from FY2022.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹36.6B
Latest YoY
−32.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−28.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−14.5%
Avg. revenue growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−13.8%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
−20.4% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−20.4%
Dividend yield0.0%
Operating margin (EBIT) 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.0.5% (2021) → 8.8% (2026) · rising
Worst earnings drop340% (2021) (loss year, drop beyond 100%) · in INR
⚠ Revenue per share shrinking 16.7%/yr over ~5Y (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.
Revenue −22.6%/yr
FY22 ₹102B
FY23 ₹98.6B
FY24 ₹66.3B
FY25 ₹54.1B
FY26 ₹36.6B
Net income −19.8%/yr
FY22 ₹4.0B
FY23 −₹278M
FY24 ₹4.8B
FY25 ₹1.1B
FY26 ₹1.7B

HCC screens 73% overvalued. Compare with Quanta Services, Inc →

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Cite: Fair Value Calculator (2026). "Hindustan Construction Company Fair Value". https://www.fairvalue-calculator.com/stock/HCC.BSE

Peer Group

Engineering & Construction · 817 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 46 · Below median
Fair Value upside −42% · Below median
Return on equity (TTM) 22% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 15% · Top 25%
Revenue growth −32% · Bottom 25%
Debt / equity 0.31× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 32.9× · Pricier than 75% of peers
P/B 2.61× · Pricier than median
P/S (TTM) 1.25× · Pricier than median
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 8.9× · Pricier than median
PEG 5.31× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 17
PAST40 · sector 0
HEALTH96 · sector 97
DIVIDEND6 · sector 19

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
Quanta Services, Inc PWR $620.06 $143.92 −77%
Vinci SA DG €113.95 €185.62 +63%
Comfort Systems USA, Inc FIX $1,610 $519.97 −68%
Larsen & Toubro Limited LT ₹4,072 ₹2,196 −46%
Ferrovial N.V FER €57.28 €19.17 −67%
HOCHTIEF Aktiengesellschaft HOT €426.00 €203.87 −52%
Samsung C&T Corporation 028260 373,000 KRW 261,411 KRW −30%
EMCOR Group EME $754.16 $549.47 −27%
MasTec, Inc MTZ $241.00 $100.00 −59%
Bouygues SA EN €46.65 €65.67 +41%

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Frequently asked questions

Is Hindustan Construction Company (HCC) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of ₹13.27 versus a price of ₹23.00, about −42% upside (overvalued).
What is the fair value of HCC?
Our model-based fair value for Hindustan Construction Company is ₹13.27 (as of Aug 21, 2026), built from audited fundamentals. The current price: ₹23.00.
What is the quality score of HCC?
Hindustan Construction Company has a Quality Score of 46/100. 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 (HCC)?
Our model-based price target is the fair value of ₹13.27 (as of Aug 21, 2026) from 24 valuation models. Cautious scenario ₹9.95, optimistic scenario ₹16.59. 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 ₹13.27, about −42% upside versus a price of ₹23.00 (overvalued). Cautious scenario ₹9.95, optimistic scenario ₹16.59. The calculation is refreshed regularly with new filings.
What is the revenue of Hindustan Construction Company (HCC)?
Hindustan Construction Company reported trailing-twelve-month revenue of about ₹44.3B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of HCC?
The net profit margin of Hindustan Construction Company is about 3.4%, meaning it keeps roughly 3.4% of revenue as net income. Based on the latest reported figures.
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