HINDUSTAN CONSTRUCTION CO Fair Value
HCC · Construction · Current price ₹23.35
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹8 | 9% ROE fading to 12% over ~3 yrs, on ₹8 book |
| Relative P/E | ₹23 | EPS × 35.8 peer-median P/E |
| Graham floor | ₹11 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹30 | Street consensus 12-month target price |
Is HINDUSTAN CONSTRUCTION CO undervalued?
DocStoX estimates the fair value of HINDUSTAN CONSTRUCTION CO at ₹16 per share, versus the current market price of ₹23. That puts the stock about -32.4% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹8), Relative P/E (₹23), Graham floor (₹11), Analyst target (₹30). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹8 (bear) to ₹16 (base) to ₹30 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on HINDUSTAN CONSTRUCTION CO
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.