Buy HG Infra; target of Rs 380: HDFC Securities

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26 Aug, 2025 12:21

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HDFC Securities' research report on HG Infra

HGInfra reported revenue atRs 4.7bn, 15.4% ahead ofour estimate.Execution efficiency has improved to pre-COVID levels now. While HG did not secure any orders during 1HFY21, it aims to win Rs 30-40bn during FY21. Order backlog is robust at Rs 64.4bn (3.2x FY20 Rev). Standalone net debt reduced to Rs 1.7bn from Rs 2.7bn on Sep-20 as working capital debt normalised to Rs 0.8bn.

Outlook

We maintain BUY on HG with SOTP based TP of Rs 380/Sh, valuing the EPC business at 10x Sep-22E EPS. Key risks: (1) Slowdown in NHAI ordering and,(2) delaysin receipt of pending duesfrom the Rajasthan project.

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