Accumulate HG Infra Engineering; target of Rs 724: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on HG Infra Engineering with a target price of Rs 724 in its research report dated February 14, 2026.

Broker Research

February 16, 2026 / 11:28 IST

Accumulate

Prabhudas Lilladher's research report on HG Infra Engineering

HG Infra reported a muted Q3FY26 performance with revenue moderation (- 4% YoY) due to execution delays and slower appointed dates, though EBITDA margins remained resilient at mid-teens (~15.5%). Elevated working capital and interim funding to solar SPVs led to higher standalone debt (~Rs15.5 bn, 0.5x DER), which is expected to ease post commissioning and debt drawdown (~Rs4.25 bn pending). Management has guided for ~Rs70 bn revenue in FY27 (10–12% YoY growth) with margins sustaining at ~14–15%, supported by targeted order inflows of Rs100–120 bn in FY27E. The order book stands at ~Rs136.2 bn (2.2x TTM revenue) with increasing diversification away from road (~65% of order book) into rail (20% of order book) and renewables (~15% of order book); however, ~38% of orders remain slow moving due to appointed date and land-related delays.

Outlook

Stock valuation on FY28E at 8x PER and 1x BV is attractive, we have an Accumulate rating with SOTP base target price of Rs724/sh, while execution and order conversion remain key monitorable.

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