HG Infra shares surge 5% as it emerges qualified bidder for Gujarat battery storage project

Over the past week, HG Infra’s stock has witnessed a notable uptick, climbing 12 percent

Shares of HG Infra Engineering surged 5 percent to Rs 1,197 on April 22 after the company was declared a qualified bidder by the Gujarat Urja Vikas Nigam for a significant project. The bid involves setting up a Standalone Battery Energy Storage System (BESS) in Gujarat, with a capacity of either 300 megawatts (MW) or 600 megawatt-hours (MWh), under the Tariff-Based Global Competitive Bidding framework (Phase-VI).

Over the past week, HG Infra’s stock has witnessed a notable uptick, climbing 12 percent, outpacing the 8 percent rise seen in the benchmark Nifty 50 index.

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HG Infra Engineering, headquartered in Jaipur, is an infrastructure company involved in the construction, development, design, and management of infrastructure projects. The firm is known for delivering end-to-end services, offering integrated solutions in design, engineering, procurement, and construction. It has a track record of executing critical capital projects and maintaining infrastructure assets through strategic collaborations and long-term partnerships.

Adding to the bullish sentiment, analysts at Axis Securities recently issued a "buy" recommendation for HG Infra, setting a target price of Rs 1,201 per share.

As of December 31, 2024, HG Infra’s total order book stood at a robust Rs 15,080 crore, which is nearly three times its FY24 revenue. Notably, 94 percent of the projects in the order book are government-backed, with the remaining 6 percent originating from the private sector. This composition ensures strong revenue visibility for the next two to three years.

Looking ahead, analysts are optimistic about HG Infra’s performance in Q4FY25 and have projected a compound annual growth rate (CAGR) of 15 percent in revenue, 12 percent in EBITDA, and 15 percent in profit after tax (PAT) over the FY25–FY27 period.

In addition to this, the company has bagged fresh orders worth Rs 2,195 crore during Q4FY25. The management anticipates that 35 to 40 percent of its future order book over the next two to three years will be driven by non-road infrastructure projects. Furthermore, HG Infra is aiming to secure new orders worth Rs 10,000–12,000 crore in FY26.