tiprankstipranks
Trending News
More News >
Hindustan Construction Co. Ltd. (IN:HCC)
:HCC
India Market
Advertisement

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

Compare
2 Followers

Top Page

IN:HCC

Hindustan Construction Co. Ltd.

(HCC)

Rating:48Neutral
Price Target:
₹28.00
▼(-2.54% Downside)
The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenue and high leverage. Technical indicators suggest a bearish trend, and the valuation appears high with no dividend yield to offset the risk. These factors collectively contribute to a cautious outlook for the stock.

Hindustan Construction Co. Ltd. (HCC) vs. iShares MSCI India ETF (INDA)

Hindustan Construction Co. Ltd. Business Overview & Revenue Model

Company DescriptionHindustan 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 MoneyHindustan 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
Hindustan Construction Co. Ltd. faces several challenges, including declining revenue, high leverage, and negative equity, which undermine financial stability. While there are some improvements in profitability margins and operating cash flow, the overall financial health remains concerning. The company needs to focus on improving revenue, managing expenses, and reducing debt to enhance its financial position and competitiveness in the engineering and construction industry.
Income Statement
45
Neutral
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
30
Negative
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
50
Neutral
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.
BreakdownTTMDec 2025Dec 2023Dec 2022Dec 2022Dec 2020
Income Statement
Total Revenue56.03B56.03B70.31B102.21B98.57B94.37B
Gross Profit15.08B18.45B18.97B19.54B20.25B21.10B
EBITDA14.15B7.94B16.55B18.07B6.42B11.43B
Net Income1.13B1.13B4.78B4.00B-278.40M1.97B
Balance Sheet
Total Assets80.88B80.88B90.59B141.96B131.80B121.68B
Cash, Cash Equivalents and Short-Term Investments7.52B7.52B5.13B17.03B12.51B3.51B
Total Debt16.79B16.79B22.23B44.67B55.12B42.53B
Total Liabilities71.83B71.83B92.28B149.81B138.94B129.27B
Stockholders Equity9.06B9.06B-1.68B-7.85B-7.14B-7.59B
Cash Flow
Free Cash Flow0.001.16B720.50M6.63B-1.98B4.50B
Operating Cash Flow0.001.34B906.80M7.53B169.10M5.38B
Investing Cash Flow0.00-354.50M8.25B-2.24B4.25B-357.10M
Financing Cash Flow0.001.09B-8.10B-6.60B-6.03B-5.14B

Hindustan Construction Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.73
Price Trends
50DMA
27.69
Positive
100DMA
28.71
Positive
200DMA
30.79
Negative
Market Momentum
MACD
<0.01
Negative
RSI
60.68
Neutral
STOCH
84.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HCC, the sentiment is Positive. The current price of 28.73 is above the 20-day moving average (MA) of 26.65, above the 50-day MA of 27.69, and below the 200-day MA of 30.79, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.68 is Neutral, neither overbought nor oversold. The STOCH value of 84.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HCC.

Hindustan Construction Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
₹47.86B12.03
0.63%17.23%18.23%
70
Outperform
₹62.03B23.11
0.56%-13.33%-12.34%
69
Neutral
₹53.37B2.96
-8.43%184.28%
66
Neutral
₹63.38B28.46
0.05%4.32%-37.38%
66
Neutral
₹56.64B5.81
0.13%-2.17%17.20%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
48
Neutral
₹50.31B31.08
-29.25%-66.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:HCC
Hindustan Construction Co. Ltd.
28.73
-16.75
-36.83%
IN:AHLUCONT
Ahluwalia Contracts (India) Limited
933.95
-264.18
-22.05%
IN:ASHOKA
Ashoka Buildcon Limited
185.70
-70.05
-27.39%
IN:JKIL
J. Kumar Infraprojects Limited
628.65
-140.53
-18.27%
IN:KNRCON
KNR Constructions Limited
199.15
-142.50
-41.71%
IN:MANINFRA
Man Infraconstruction Limited
160.10
-28.76
-15.23%

Hindustan Construction Co. Ltd. Corporate Events

Hindustan Construction Co. Ltd. Receives Credit Rating Upgrade
Apr 10, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025