Shares of HG Infra Engineering surged over 4 percent to Rs 1,526 per share on September 10, following the company's recent win of a major Rs 781 crore contract from the Ministry of Road Transport & Highways (MoRTH).
The contract involves upgrading a 10.630 km stretch of National Highway 47 (NH-47) in Gujarat, specifically between Narol and Sarkhej junctions. This project, which includes the construction of an elevated corridor, is being executed under the hybrid annuity model (HAM) and is expected to be completed within a 2.5-year construction period.
HG Infra has been on a roll, consistently securing substantial contracts. In August, the company was named the lowest bidder (L1) for another road upgrade project in Gujarat. The estimated project cost set by MoRTH was Rs 883.24 crore, and HG Infra's successful bid came in at Rs 781.11 crore.
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Headquartered in Rajasthan, HG Infra Engineering offers a wide array of infrastructure construction services, ranging from highways, roads, and bridges to runways, land development, and water pipelines. The company also specialises in rehabilitation and upgradation projects, cementing its presence in the Indian infrastructure space.
HG Infra’s financial performance was solid in the recently concluded June quarter. The company reported a 13 percent year-on-year (YoY) growth in revenue, reaching Rs 1,528 crore. Meanwhile, net profit rose over 8 percent YoY to Rs 162.6 crore. Operationally, its EBITDA climbed 12.1 percent YoY to Rs 332 crore, with EBITDA margins expanding by 20 basis points to 19.5 percent, reflecting efficient cost management.
The stock is well-regarded by analysts, with 14 brokerage firms covering it. Of these, 13 have issued "buy" ratings, while only one has a "hold" recommendation.
HG Infra’s stock has surged by a remarkable 72 percent so far this year, far outperforming the Nifty 50, which has gained 16 percent during the same period. The stock also reached a 52-week high of Rs 1,880 per share on July 16, 2024.
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