The shares of this leading infrastructure company jumped by 5 percent to an intraday high of Rs 1,729 apiece after it received an order worth Rs 763.11 crores from the Ministry of Road Transport and Highways for the improvement and upgradation of national highways.
Share price movements:
With the market capitalization of the firm standing at Rs 11,079 crores, the shares of H.G. Infra Engineering Limited closed at Rs 1,700 apiece on Thursday. The firm has generated a return of 81 percent during the past year and 86 percent over the last 6 months.
What happened:
As per H.G. Infra Engineering Limited’s stock exchange filings , the company has received an order worth Rs 763.11 crores from the Ministry of Road Transport and Highways for the improvement and upgradation of the newly declared NH-227B from Bahuvan Madar Majha to Jagarnathpur which needs to be executed for a time period of 2 years. The estimated project cost of the order as per the filings stands at Rs 898.5 crores.
Financials:
The sales generated by H.G. Infra Engineering Limited increased by 15.3 percent from Rs 4,662 crores in FY23 to Rs 5,378 crores in FY24. As for the net profits of the firm, it increased by 9.3 percent from Rs 493 crores to Rs 539 crores for the same time period.
Ratios:
HG Infra Engineering Limited has reported a Return on equity ( ROE ) and return on capital employed (ROCE ) of 21.93 percent and 25.55 percent respectively as of March 2024. Also for the same period, the debt-to-equity ratio of the firm stood at 0.61 times.
EBITDA:
The EBITDA of H.G. Infra Engineering Limited rose by 15.77 percent from Rs 710.3 crores in FY23 to Rs 822.0 crores in FY24
Order book:
As of FY24 the order book value of H.G. Infra Engineering Limited stood at Rs 12,434 crores highlighting a 1.29 percent increase from an order book value of Rs 12,595.3 crores as of FY23.
New projects:
H.G. Infra Engineering Limited has been awarded various new projects during Q4FY23-24 from clients such as Central Railway, South Central Railway, East Central Railway, NHAI, and JDVVNL for the states of Maharashtra, Bihar, Jharkhand, Andra Pradesh, and Rajasthan.
Shareholding Pattern:
As of June 2024, H.G. Infra Engineering Limited’s latest shareholding pattern reveals that promoters hold 74.53 percent of the shares. Foreign institutional investors held 2.04 percent, while domestic institutional investors, including HSBC Small Cap Fund with a 3.96 percent stake, own 12.13 percent stakes. The remaining 11.30 percent of shares of the firm are held by the public.
About the Company:
Incorporated in 2003 and headquartered in Jaipur H.G. Infra Engineering Limited (HGIEL) is an Indian Road Infrastructure Company engaged in the business of Engineering, Procurement, and Construction (EPC) Services, Maintenance of roads, bridges, flyovers, and other infrastructure contract works.
Written By Zahal
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