Buy H G Infra Engineering; target of Rs 291: Anand Rathi

Anand Rathi 's research report on H G Infra Engineering

Considering the Covid-compelled disruptions and lower effective under-execution OB, HG Infra’s Q1 income statement is comforting. While there were no inflows, its existing OB provides ample assurance but a part of it has yet to be appointed. Besides, the opportunity pipeline is reassuring. Recent protraction in the working capital (consequently, higher debt) is the key monitorable, but management sees this as temporary, and expects it to return to normal by end-FY21.

Outlook

Its proven execution capabilities, healthy revenue assurance and scope for a further execution ramp-up lead us to retain our Buy rating with a lower TP of `291 from `311 earlier.

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