Hindustan Construction Current Valuation vs. Total Debt
| HCC Stock | 44.52 1.92 4.13% |
For Hindustan Construction profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hindustan Construction to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hindustan Construction utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hindustan Construction's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hindustan Construction over time as well as its relative position and ranking within its peers.
Hindustan |
Hindustan Construction Total Debt vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hindustan Construction's current stock value. Our valuation model uses many indicators to compare Hindustan Construction value to that of its competitors to determine the firm's financial worth. Hindustan Construction is rated as one of the top companies in current valuation category among its peers. It also is rated as one of the top companies in total debt category among its peers making up about 0.24 of Total Debt per Current Valuation. The ratio of Current Valuation to Total Debt for Hindustan Construction is roughly 4.19 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hindustan Construction's earnings, one of the primary drivers of an investment's value.Hindustan Current Valuation vs. Competition
Hindustan Construction is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 1.61 Trillion. Hindustan Construction holds roughly 93.14 Billion in current valuation claiming about 6% of equities under Industrials industry.
Hindustan Total Debt vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Hindustan Construction |
| = | 93.14 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Hindustan Construction |
| = | 22.23 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Hindustan Total Debt vs Competition
Hindustan Construction is rated as one of the top companies in total debt category among its peers. Total debt of Industrials industry is currently estimated at about 56.22 Billion. Hindustan Construction totals roughly 22.23 Billion in total debt claiming about 40% of equities under Industrials industry.
Hindustan Construction Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Hindustan Construction, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hindustan Construction will eventually generate negative long term returns. The profitability progress is the general direction of Hindustan Construction's change in net profit over the period of time. It can combine multiple indicators of Hindustan Construction, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 1.4 B | 1.5 B | |
| Operating Income | 11.8 B | 12.3 B | |
| Income Before Tax | 7.8 B | 8.2 B | |
| Total Other Income Expense Net | -4 B | -4.2 B | |
| Net Income | 7.3 B | 7.6 B | |
| Income Tax Expense | 2.5 B | 2.6 B | |
| Net Income From Continuing Ops | 5.3 B | 5.6 B | |
| Net Loss | -320.2 M | -336.2 M | |
| Interest Income | 373.9 M | 355.2 M | |
| Net Interest Income | -8.1 B | -8.5 B | |
| Change To Netincome | 2.1 B | 2 B |
Hindustan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hindustan Construction. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hindustan Construction position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hindustan Construction's important profitability drivers and their relationship over time.
Use Hindustan Construction in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hindustan Construction position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hindustan Construction will appreciate offsetting losses from the drop in the long position's value.Hindustan Construction Pair Trading
Hindustan Construction Pair Trading Analysis
The ability to find closely correlated positions to Hindustan Construction could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hindustan Construction when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hindustan Construction - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hindustan Construction to buy it.
The correlation of Hindustan Construction is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hindustan Construction moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hindustan Construction moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hindustan Construction can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Hindustan Construction position
In addition to having Hindustan Construction in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Retail Thematic Idea Now
Retail
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Retail theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Retail Theme or any other thematic opportunities.
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Other Information on Investing in Hindustan Stock
To fully project Hindustan Construction's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hindustan Construction at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hindustan Construction's income statement, its balance sheet, and the statement of cash flows.