Hindustan Construction Co. Ltd. (HCC) AI Stock Analysis

• Market Cap: ₹46.54B
• Dividend Yield: N/A
• Average Volume (3M): 461.41K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 2.23
• Revenue Growth: -29.25%
• EPS Growth: -66.38%
• Country: IN
• Employees: 4,001
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 0.40
• Shares Outstanding: 1,819,383,200
• 10 Day Avg. Volume: 494,846
• 30 Day Avg. Volume: 461,409
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹26.00
• Price Target Upside: -2.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ₹26.00 ▼(-2.33% Downside)

The overall stock score of 41 reflects significant financial and technical challenges faced by Hindustan Construction Co. Ltd. The primary concern is the company's financial performance, characterized by declining revenue, negative equity, and high leverage. Technical analysis further indicates bearish trends, with the stock trading below key moving averages and showing oversold signals. Valuation metrics highlight a high P/E ratio, suggesting the stock is not attractively priced given its financial instability.

Hindustan Construction Co. Ltd. Business Overview & Revenue Model

Company Description

Hindustan Construction Co. Ltd. (HCC) is a leading infrastructure construction company in India, engaged in the engineering and construction of complex projects across various sectors. These sectors include transportation, power, water, and urban infrastructure development. HCC is renowned for its expertise in delivering large-scale projects such as highways, bridges, hydroelectric power plants, water treatment facilities, and urban development projects. The company is committed to innovation and sustainability in its construction practices, ensuring efficient and environmentally friendly project execution.

How the Company Makes Money

Hindustan Construction Co. Ltd. generates revenue primarily through its construction and engineering contracts. The company bids on and secures contracts for large-scale infrastructure projects, which provide a steady stream of income through project-based payments from government bodies, private enterprises, and international clients. HCC also engages in public-private partnerships (PPPs) to undertake projects that require collaboration with government entities, offering a mix of upfront payments and long-term revenue sharing. Additionally, the company may earn revenue from joint ventures and strategic alliances with other construction firms, leveraging combined expertise to handle complex projects. HCC's diversified portfolio across various infrastructure sectors also helps mitigate risk and ensures continuous business from multiple avenues.

Hindustan Construction Co. Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges, including declining revenue, high leverage, and negative equity, which undermine its financial stability. While there are moderate improvements in profitability margins and operating cash flow, the overall financial health remains concerning.

Income Statement

The company experienced a decline in total revenue in recent years, from 102,211 million in 2022 to 56,033 million in 2025, indicating a negative revenue growth trajectory. Gross profit margin in 2025 is approximately 32.9%, which is healthy, but the net profit margin is low at 2.0%, reflecting challenges in managing expenses or external pressures. EBIT and EBITDA margins show a moderate improvement over the past year, but remain below industry standards.

Balance Sheet

The company struggles with a negative equity situation, as shown by negative stockholders' equity in recent years. The debt-to-equity ratio is not meaningful due to negative equity, highlighting high leverage and financial instability. The equity ratio is negative due to the company's liabilities exceeding its assets, posing a significant risk to financial health.

Cash Flow

Operating cash flow shows improvement in 2025, reaching 1,336 million, but free cash flow is relatively low compared to historical peaks. The operating cash flow to net income ratio is positive, indicating some ability to convert income into cash. However, inconsistent free cash flow growth and high net debt levels raise concerns over sustainability and flexibility in financing operations.

Breakdown	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	56.03B	70.31B	102.21B	98.57B	79.97B
Gross Profit	18.45B	18.97B	19.54B	20.25B	13.93B
EBITDA	7.94B	16.55B	18.07B	6.42B	2.22B
Net Income	1.13B	4.78B	4.00B	-278.40M	-6.10B
Balance Sheet
Total Assets	80.88B	90.59B	141.96B	131.80B	127.79B
Cash, Cash Equivalents and Short-Term Investments	7.52B	5.13B	17.03B	12.51B	7.51B
Total Debt	16.79B	22.23B	44.67B	55.12B	47.77B
Total Liabilities	71.83B	92.28B	149.81B	138.94B	140.97B
Stockholders Equity	9.06B	-1.68B	-7.85B	-7.14B	-13.18B
Cash Flow
Free Cash Flow	1.16B	720.50M	6.63B	-1.98B	2.73B
Operating Cash Flow	1.34B	906.80M	7.53B	169.10M	3.48B
Investing Cash Flow	-354.50M	8.25B	-2.24B	4.25B	-745.70M
Financing Cash Flow	1.09B	-8.10B	-6.60B	-6.03B	1.01B

Hindustan Construction Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HCC, the sentiment is Negative. The current price of 26.62 is below the 20-day moving average (MA) of 26.97, below the 50-day MA of 29.69, and below the 200-day MA of 31.73, indicating a bearish trend. The MACD of -0.94 indicates Negative momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 65.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HCC.

Hindustan Construction Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JKIL	74 Outperform	₹50.82B	12.47		0.60%	17.23%	18.22%
MANINFRA	70 Outperform	₹63.19B	21.64		0.55%	-12.30%	-6.27%
ASHOKA	69 Neutral	₹51.67B	2.93		―	-8.43%	184.28%
KNRCON	66 Neutral	₹56.80B	5.96		0.12%	-1.26%	17.20%
AHLUCONT	61 Neutral	₹63.10B	31.22		0.05%	6.31%	-46.09%
Sector *	59 Neutral	AU$1.63B	10.85	-5.90%	3.59%	9.81%	6.78%
HCC	41 Neutral	₹46.54B	27.67		―	-29.25%	-66.38%

Hindustan Construction Co. Ltd. Corporate Events

Hindustan Construction Co. Ltd. Receives Credit Rating Upgrade

Hindustan Construction Company Ltd. announced an upgrade in its credit ratings by CARE Ratings Ltd. for its bank facilities and debentures. The ratings have been improved from CARE BB+; Positive to CARE BBB-; Stable, reflecting a positive outlook on the company’s financial stability and operational performance. This upgrade may enhance the company’s market positioning and stakeholder confidence.