HINDUSTAN CONSTRUCTION CO Valuation

HCC · Construction · Current price ₹23.38

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DocStoX fair value
₹16
low confidence
Current price
₹23
Upside
-32.4%
P/E ratio
37.1x
P/B ratio
3.1x
Verdict
Avoid
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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.

Valuation multiples

HINDUSTAN CONSTRUCTION CO trades at a P/E of 37.1x and a P/B of 3.1x, with a dividend yield of 0.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

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.