Buy HG Infra Engineering; target of Rs 1130: Emkay Global Financial

Emkay Global Financial is bullish on HG Infra Engineering has recommended buy rating on the stock with a target price of Rs 1130 in its research report dated May 12, 2023.

Broker Research

May 13, 2023 / 22:54 IST

Buy

26 Aug, 2025 12:21

Volume

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Emkay Global Financial's research report on HG Infra Engineering

HG Infra reported 22%/24% growth in sales/PAT for FY23 on account of strong execution. Order book at the end of the year stands at Rs127bn – up 60% YoY. During the year, the company has successfully diversified into the metro/railways segment with order booking of Rs15bn. Apart from these sectors, the company is also bidding for the water and airports sector, which is a key positive from a medium-term perspective in our view. The company is targeting 23% growth in sales for FY24, with order inflow expectation at Rs80- 90bn.

Outlook

Over the next few years, the non-road sector is expected to constitute 20-25% of orders. Recently, the company has entered into a share purchase agreement for four HAM projects at 1.55x P/B. We maintain our BUY rating on the stock with Mar-24 TP of Rs1,130.

For all recommendations report, click here