Building in the prevailing muted demand prospects both domestically as well as globally in its base business and delay in commissioning of new projects, we expect HSCL to clock sales, PAT CAGR of 7.0%, 14.3%, respectively, in FY20E-22E. With a decline in margin profile, return ratios matrix has reduced to ~10% RoE, which significantly limits our ability to assign a higher valuation multiple to HSCL. Consequently, we value HSCL at | 50 i.e. 10x P/E on FY22E EPS of | 5.0. We derive some comfort from consistent CFO generation with controlled leverage on B/S (debt: equity at...