HG Infra Engineering lays the groundwork for higher growth
Pick-up in execution, healthy order book and diversification into new areas would continue to drive growth as well as valuation multiples
September 23, 2021 / 01:29 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
The construction sector is likely to witness strong growth in the medium term, driven by the government focus on infrastructure as it is the key driver of economic growth and job creation.
The government is planning huge investments (Rs 111 lakh crore in creating the National Infrastructure Pipeline) over the next five years, creating robust opportunities for the players.
While opportunities are huge, players with strong balance sheets and financial discipline, such as HG Infra Engineering (CMP: Rs 620; Market Capitalisation:...