Scrip Watch

Hindustan Construction Co. Ltd

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Hindustan Construction Co. Ltd

Hindustan Construction Co. Ltd
Construction & Engineering
FV – Rs 1; 52wks H/L –48/18 ; TTQ – 24.82 Lacs ; CMP – Rs 47 (As On April 25th 2017) ;                    

                Market Cap – Rs 4800 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)


Equity Capital


Net worth
Long Term Debt
Total
Sales
PAT
BV
(Rs)

EPS (Rs)

P/E

Industry P/E

P/BV

Promoter’s
Stake
Beta
77.91 703 7191 8853 -318.14 9 -4.08 21.38 5.22 27.8

2.61

 

Standalone Financials and Valuations for 9Months FY17


Equity Capital


Net worth

Total
Sales
PAT
BV
(Rs)

TTM EPS (Rs)

TTM P/E

Industry P/E

P/BV

Promoter’s
Stake
Beta
77.92 2569 2838 38.5 33 1 47 21.38 1.4 27.8

2.61

The HCC Group, with a group turnover of Rs. 10353 Crs. comprises of HCC Ltd, HCC Infrastructure Co. Ltd, Lavasa Corporation td and Steiner AG in Switzerland.

In addition, the Company has around 3701 Crs of orders in the L1 position, which are expected to turn into firm orders in 2016-17. Thus, HCC not only has a robust order book across the sectors, but also the average size of its new orders is over 700 Crs.

HCC has a standalone debt of Rs. 4900 Crs. and the arbitration awards will help the company to immediately cut its debt by almost half and materially reduce it even further within 12 to 24 months. http://www.livemint.com/Companies/nX8qrZxTX7h3ot6I8TBNPJ/Hindustan-Construction-to-start-getting-arbitration-awards-b.html

 

Valuation Parameters:

  1. Long Term Debt to Equity – 10.2
  2. ROE % – NIL
  3. Market Cap/Sales – 0.54

Key Updates:

  • The current order book is at Rs. 20936 Crs. (As on 31st Dec,2017)
  • HCC has posted an average annual revenue exceeding 4000 Crs, secured orders of over 14000 Crs and completed 17 major projects.
  • The company has been awarded Rs. 369 Crs contract from IRCON on Jan 9, 2017.
  • The company bags an order from NHAI worth Rs.1748 Crs. for constructing 32kms of highways in Jammu & Kashmir.
  • The company also expects of winning an order from the Mumbai Metro Project where it has emerged as the lowest bidder for one of the seven sections.
  • The company has utilised its QIP proceeds of Rs 400 Crs. (Floor Price of Rs.30) which was on April 8, 2015 to reduce debt.
  • The company also has realised Rs 158 crore from the sale of 247 Park.

Overwiew:

  • Hindustan Construction Company Limited provides engineering and construction services.
  • The Company’s businesses span the sectors of engineering and construction, real estate, infrastructure, urban development and management. It operates in the engineering and construction segment.
  • It has a presence in the sectors of hydro power, water solutions, transportation and nuclear power.
  • In the hydro power segment, its operations include construction of dams, barrages, tunnels, underground power stations and surface power stations, along with water conductor systems, such as surge shafts, pressure shafts and penstocks.
  • Its operations also include material handling, such as aerial cableways for concrete placement, tower cranes, ropeways and hydraulic operated traveling/collapsible tunnel formwork, among others.
  • It provides solutions in nuclear power by tie-ups with engineering and construction solution providers. In addition, the
  • Company delivers transport systems, bridges and highways.

 

  • HCC has developed Lavasa City, a planned hill city and one of India’s largest urban development and management initiatives which attracted 1 million tourists during the year.

Management:

  • Ajit Gulabchand – CMD
  • Arjun Dhawan – CEO
  • Ram P. Gandhi – Director

The Equity Capital is @ Rs. 77.91 Crs consisting of 1010703635 equity Shares of FV Rs 1 currently held 

85.38% Of the Promoter’s Holding is Pledged.

Major Non-Promoter Holdings:

Sr. No Non – Promoters No. of shares held % of shares held
1 HDFC Trustee Company Limited 70021087 6.93
2 Siwa Holdings Limited 36082151 3.57
3 Abu Dhabi Investment Authority – Lglinv 16364000 1.62
4 IDBI Bank Ltd. 25434620 2.52
5 Export-Import Bank of India 24251091 2.4
6 Punjab National Bank 21955252 2.17
7 Canara Bank-Mumbai 19603966 1.94
8 Axis Bank Ltd 16471241 1.63
9 State Bank Of India 15185691 1.5
10 United Bank Of India 14569452 1.44
11 ICICI Bank Ltd 14677601 1.45

 


Consolidated Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 77.91 64.58 60.66 60.66 60.67 60.66
Networth 703 524 540 515 761 1193
Total Debt 9340 10349 9829 9270 7336 6813
Net Sales 8853 10415 9842 8626 8247 7231
Other Income 84 62 174 116 89 75
PAT -318.14 -160 -277 -482 -530 -64
Book Value (Rs) 9 8 9 8 13 20
EPS (Rs) -4.08 -2.48 -4.57 -7.95 -8.74 -1.06

 

During the year, additional 133332800 equity shares were issued of face value Rs.1 each.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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