One of the infra stocks engaged in the business of engineering, procurement, and construction (EPC) services, maintenance of roads, bridges, flyovers, and other infrastructure contract works. The stock has jumped 6.42 percent after receiving an order from the Ministry of Road Transport and Highways (MORTH) worth Rs. 763 crore
Stock Price Movement:
In Wednesday’s trading session, H.G. Infra Engineering Limited’s share jumped to an intraday high of 6.42 percent from the previous close of Rs. 1,456.30. The stock opened at Rs. 1,539.55 and is currently trading at Rs. 1,532.95, with a high of Rs. 1,549.80 and a low of Rs. 1,501. The market capitalization now stands at approximately Rs. 9,990.41 crore.
What Happened:
H.G. Infra Engineering Limited has received a Letter of Acceptance from the Ministry of Road Transport and Highways (MORTH) for the improvement and upgrade of NH-227B from Bahuvan Madar Majha to Jagarnathpur in Uttar Pradesh.
The project is valued at Rs. 763.11 crore and involves the construction of a two-lane road with paved shoulders over 63.84 km. The project is under the Hybrid Annuity Mode and is expected to be completed within two years, contributing to the development of the “84 Kosi Parikrama Marg.”
Orderbook:
H.G. Infra Engineering Limited holds a strong and diversified order book of Rs. 16,623.5 crore as of September 2024. The majority of the order book, Rs. 12,362.60 crore (74.15 percent), is driven by projects in the roads and highways sector.
Additionally, the company has secured Rs. 2,386.7 crore in the railway and metro segment and Rs. 1,910.8 crore in the solar sector.
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Expanding HAM Projects:
H.G. Infra Engineering Limited is expanding its footprint in hybrid annuity model (HAM) infrastructure projects across various states. Notable projects include the Rewari Bypass in Haryana, Khammam Devarapalli packages in Telangana, and the Raipur Visakhapatnam AP-1 in Andhra Pradesh. These projects cover a cumulative length of over 200 km, with sanctioned debt exceeding Rs. 4,368.5 crore.
Recent Quarter Results and Ratios:
H.G. Infra Engineering Limited reported a decrease in revenue from Rs. 955 crore in Q2 FY24 to Rs. 902 crore in Q2 FY25, a decline of 5.55 percent. The net profit also dropped by 15.63 percent, from Rs. 96 crore in Q2 FY24 to Rs. 81 crore in Q2 FY25.
Over the past five years, the company has achieved a compound annual growth rate (CAGR) of 21.71 percent in revenue and 33.52 percent in net profit.
Regarding return ratios, the company’s return on capital employed (ROCE) and return on equity (ROE) are both 24.1 percent. H.G. Infra Engineering has a debt-to-equity ratio of 0.91x, and its earnings per share (EPS) stands at Rs. 82.2.
Company Overview:
H.G. Infra Engineering Limited is an Indian company specializing in the construction, development, and management of infrastructure projects. With a focus on EPC and Hybrid Annuity Model (HAM) projects, the company undertakes roads, bridges, flyovers, railways, runways, and water pipelines.
The company operates across multiple states and is involved in key projects such as Gurgaon Sohna, Narnaul Bypass, and Jodhpur-Marwar.
Written By – Nikhil Naik
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