Moneycontrol Be a Pro
Get App
Last Updated : Jun 13, 2019 04:31 PM IST | Source:

Buy H.G. Infra Engineering; target of Rs 456: Dolat Capital

Dolat Capital is bullish on H.G. Infra Engineering has recommended buy rating on the stock with a target price of Rs 456 in its research report dated May 27, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

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

HGINFRA posted a 15.1% YoY growth in revenue in Q4FY19 (highest quarterly revenue in its history) to `5.8 bn (11.6% below our estimate), due to muted execution. The EBITDA margin was up 46 bps YoY to 16.1% (116 bps above our estimate), primarily due to a lower construction cost at 76.6% of revenue, which was partially offset by higher employee and other expenses. The PAT was up 2.1% YoY to `367 mn (19.5% below our estimate), due to a higher tax rate of 37.6% vs. 21.1% (Q4FY18).


We expect revenue/ Adj. PAT CAGR of 23.9%/ 30.3% over FY19-21E. HGINFRA looks attractive at 11.3x/ 9.1x FY20E/ FY21E EPS, hence we maintain BUY, with a SOTP of `456 (13x FY21E EPS) and 1xFY21E P/B for HAM equity investments.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jun 13, 2019 04:31 pm
Follow us on
Available On
PCI DSS Compliant