Buy H.G. Infra Engineering; target of Rs 330: Dolat Capital

Dolat Capital's research report on H.G. Infra Engineering

The annual report highlights HG Infra’s business model of getting sturdy, strategic and steady over the years. They focus on building a strong asset base which helps reducing rent and interest cost for hired equipment which in turn improves margins. HG Infra will always focus on projects with desired level of EBITDA margins/ IRRs, working on timely execution, deleveraging balance sheet with working capital management and cash flow generation.

Outlook

HG Infra is open to opportunities beyond road sector such as Railways (civil part of the track laying), Water Infra (laying water pipeline for last mile connectivity) and Airports (Construction of runways, taxiways).

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