Share price of this small-cap stock jumped by nearly 2.5% on NSE to Rs. 934 in the morning trading session of March 12th, from its previous close of Rs. 911.1, after the company announced receiving a Letter of Award from NHAI.
With a market capitalisation of Rs. 5,911.3 crores, in the last one year, HG Infra Engineering Limited has delivered about 18.8 percent of positive returns and nearly 6.5 percent of returns, so far in 2024. However, it has given around 4.3 percent of negative returns in the last six months.
According to recent regulatory filings with the stock exchanges, H.G. Infra Engineering Limited received a letter of award from the National Highways Authority of India (NHAI) for Rs. 862.11 crore, compared to the estimated cost for this project by NHAI was Rs. 943.99 crore.
The letter of award received by the company involves an Access Controlled Highway of 4 Lane with Paved Shoulders from Tamil Nadu or Andhara Pradhesh border to Puttur, and 6 Lane with Paved Shoulders from Mallavaram to Renigunta in Andhra Pradesh on Hybrid Annuity Mode (HAM).
The overall length of the highway is 37.43 kilometres, and the construction period is 24 months, as per the filings.
In terms of financials, the company’s revenue from operations grew by 42.93 percent QoQ from Rs. 955 crore in Q2 FY23-24 to Rs. 1,365 crore in Q3 FY23-24, accompanied by an increase in net profit of 6.25 percent from Rs. 96 crore in Q2 FY23-24 to Rs. 102 crore in Q3 FY23-24.
As of December 2023, FIIs hold 1.56 percent of the shares, whereas DIIs hold 12.45 percent of the shares in the company, aggregating to 14.01 percent of the institutional holdings.
With more than 21 years of expertise in roads and highways, H.G. Infra Engineering Limited is a leading infrastructure development company.
Established in 2003, the company provides engineering, procurement and construction (EPC) services on a turnkey basis and HAM (Hybrid Annuity Model), focusing on civil construction and related infrastructure projects.
Written by Shivani Singh
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