Buy H G Infra Engineering; target of Rs 959: Anand Rathi

Anand Rathi's research report on H G Infra Engineering

On the recent appointment of some keys orders, HG’s Q3 operations scaled up materially and growth wasn’t without profitability. Its maiden success with an order in the non-roads segment renders the quarter all the more appealing. Collections couldn’t keep up with heightened activity and equity infusion needs. Consequently, leverage rose, but the balance sheet is still sturdy. Success in efforts to monetise hybrid annuity assets would be good.

Outlook

On the expected better execution, well-set balance sheet and reassuring valuation, we retain our Buy rating with a TP of Rs959.

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