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Hindustan Construction CoNSE:HCC -3.11%70 Return-on-Tangible-Equity is 11.38% as of Mar. 2026, which is 53% below its 10-year median of 24.03. GuruFocus rates NSE:HCC with a GF Score™ of 70/100 and a GF Value™ of ₹16.49 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,712 Construction companies, Hindustan Construction Co ranks better than 63.84% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Hindustan Construction Co's annualized net income for the quarter that ended in Mar. 2026 was ₹2,358 Mil. Hindustan Construction Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹20,725 Mil. Therefore, Hindustan Construction Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.38%.
The historical rank and industry rank for Hindustan Construction Co's Return-on-Tangible-Equity or its related term are showing as below:
NSE:HCC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.33 Med: 24.03 Max: 36.72
Current: 12.54
During the past 13 years, Hindustan Construction Co's highest Return-on-Tangible-Equity was 36.72%. The lowest was 11.33%. And the median was 24.03%.
NSE:HCC's Return-on-Tangible-Equity is ranked better than 63.84% of 1712
companies
in the Construction industry
Industry Median: 8.235
vs NSE:HCC: 12.54
Hindustan Construction Co (NSE:HCC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Hindustan Construction Co Return-on-Tangible-Equity Related Terms
Hindustan Construction Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hindustan Construction Co's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hindustan Construction Co Return-on-Tangible-Equity Chart
NSE:HCC vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Hindustan Construction Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hindustan Construction Co Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Hindustan Construction Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hindustan Construction Co's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 11.38% mean?
Hindustan Construction Co (NSE:HCC) has a Return-on-Tangible-Equity of 11.38% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hindustan Construction Co and its competitors. This is 53% below median its historical median of 24.03. Over the past decade, Hindustan Construction Co's Return-on-Tangible-Equity has ranged from 11.33 to 36.72. According to the industry distribution chart, Hindustan Construction Co ranks #619 out of 1712 companies in the Construction industry, placing it in the top 36.2%.
Is Hindustan Construction Co's Return-on-Tangible-Equity too high?
Hindustan Construction Co's current Return-on-Tangible-Equity of 11.38% is 53% below median its 10-year median of 24.03. Over the past 10 years, this metric has ranged from a low of 11.33 to a high of 36.72. The Construction industry median Return-on-Tangible-Equity is 8.24. Hindustan Construction Co's value of 11.38% is 38.2% above this industry median. Based on the distribution chart, Hindustan Construction Co ranks #619 out of 1712 companies in the Construction industry, which is above the industry midpoint. Overall, Hindustan Construction Co has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Construction Co's Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Hindustan Construction Co ranks #619 out of 1712 companies for Return-on-Tangible-Equity. This puts Hindustan Construction Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.24. Hindustan Construction Co's value of 11.38% is 38.2% above this benchmark. Historically, Hindustan Construction Co's own Return-on-Tangible-Equity has ranged from 11.33 to 36.72 over the past decade. While the company's 10-year median is 24.03 vs. the industry median of 8.24, Hindustan Construction Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.24, based on 1,712 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hindustan Construction Co's current Return-on-Tangible-Equity of 11.38% is 38.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hindustan Construction Co and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Construction Co's current Return-on-Tangible-Equity is 11.38%, which is 53% below median its own 10-year median of 24.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Construction Co (NSE:HCC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹16.49, compared to a current price of ₹23.03 — trading 39.7% above its estimated fair value. The current Return-on-Tangible-Equity is 11.38%, which is 53% below median its 10-year median of 24.03 and 38.2% above the Construction industry median of 8.24. Hindustan Construction Co's overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Hindustan Construction Co (NSE:HCC), the current Return-on-Tangible-Equity is 11.38% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hindustan Construction Co (NSE:HCC) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Construction Co stock appears to be overvalued.
The current stock price of ₹23.03 is trading 39.7% above its estimated GF Value™ of ₹16.49.
GuruFocus considers Hindustan Construction Co to be Significantly Overvalued.
Key valuation signals for NSE:HCC:
Return-on-Tangible-Equity: 11.38% (53% below median its 10-year median of 24.03)
GF Value™: ₹16.49 vs. price of ₹23.03 (39.7% above fair value)
Industry Position: 38.2% above the Construction median (#619 of 1712)
No single metric tells the full story. See the NSE:HCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Construction Co Ltd is engaged in the EPC(Engineering, Procurement, and Construction) Business. It is involved in high-value projects that span across diverse sectors such as transportation, power, marine projects, irrigation and water supply, special buildings and industrial plants. Its business segments include Engineering and Construction, which is the key revenue driver; Infrastructure; Real Estate; and others.
70GF Score
Get the complete analysis for NSE:HCC
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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