Hindustan Construction Company Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Hindustan Construction has not reported any payouts.
• Unable to evaluate Hindustan Construction's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Hindustan Construction's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Whilst loss making Hindustan Construction has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -45.5% per year.
• Whilst loss making Hindustan Construction has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
• Hindustan Construction's cash and other short term assets cover its long term commitments.
• Low level of unsold assets.

Cons

• Hindustan Construction's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not well covered by operating cash flow (10.6%, less than 20% of total debt).
• Hindustan Construction has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
• Irrelevant to check if Hindustan Construction's debt level has increased considering it has negative shareholder equity.
• Hindustan Construction is making a loss, therefore interest payments are not well covered by earnings.
• Hindustan Construction has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

management

Pros

• The tenure for the Hindustan Construction board of directors is about average.
• Arjun's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Hindustan Construction management team is about average.

Cons

• Arjun's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Hindustan Construction is not covered by any analysts.
• Hindustan Construction has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Hindustan Construction's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Hindustan Construction does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
• It is difficult to establish if Hindustan Construction has efficiently used its assets last year compared to the IN Construction industry average (Return on Assets) as it is loss-making.
• It is difficult to establish if Hindustan Construction improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Hindustan Construction has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
• Unable to compare Hindustan Construction's 1-year growth to the IN Construction industry average as it is not currently profitable.

value

Pros

• Hindustan Construction's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Hindustan Construction's share price is below the future cash flow value, and at a substantial discount (> 40%).

Cons

• Hindustan Construction has negative assets, we can't compare the value of its assets to the IN Construction industry average.
• Hindustan Construction is loss making, we can't compare its value to the IN Construction industry average.
• Hindustan Construction is loss making, we can't compare the value of its earnings to the India market.
• HCC underperformed the Construction industry which returned -40% over the past year.
• HCC underperformed the Market in India which returned -14.5% over the past year.
• NSEI:HCC is up 5.3% underperforming the Construction industry which returned 7.1% over the past month.
• NSEI:HCC is up 5.3% underperforming the market in India which returned 8% over the past month.