One of the infrastructure stocks is involved in the business of engineering, procurement, and construction (EPC) services, as well as the maintenance of roads, bridges, flyovers, and other infrastructure-related contract works. The stock jumped 5.61 percent after signing a Battery Energy Storage Purchase Agreement with NTPC Vidyut Vyapar Nigam Limited
Stock Price Movement:
During Wednesday’s trading session, H.G. Infra Engineering Limited’s share surged to an intraday high of 5.61 percent from the previous closing price of Rs. 1,460.20. The stock opened at Rs. 1,479.95 and is currently trading at Rs. 1,501.85, with a high of Rs. 1,542.05 and a low of Rs. 1,478.70. The market capitalization is now approximately Rs. 9,787.72 crore.
What Happened:
H.G. Banaskantha Bess Private Limited, a wholly owned subsidiary of H.G. Infra Engineering Limited, has signed a Battery Energy Storage Purchase Agreement with NTPC Vidyut Vyapar Nigam Limited. The agreement is for the procurement of 185 MW/370 MWh of battery energy storage on a long-term basis.
Order Book:
As of September 2024, H.G. Infra Engineering Limited boasts a robust and diversified order book valued at Rs. 16,623.5 crore. A significant portion, Rs. 12,362.6 crore (74.15%), is attributed to projects in the roads and highways sector.
The company has also secured Rs. 2,386.7 crore in the railway and metro segment, along with Rs. 1,910.8 crore in the solar sector.
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Expanding HAM Projects:
H.G. Infra Engineering Limited is broadening its presence in hybrid annuity model (HAM) infrastructure projects across multiple states.
The company has key projects including the Rewari Bypass in Haryana, Khammam Devarapalli packages in Telangana, and the Raipur Visakhapatnam AP-1 in Andhra Pradesh. Together, these projects span over 200 km, with sanctioned debt surpassing Rs. 4,368.5 crore.
Recent Quarter Results and Ratios:
H.G. Infra Engineering Limited reported a decline in revenue from Rs. 955 crore in Q2 FY24 to Rs. 902 crore in Q2 FY25, reflecting a decrease of 5.55%. The net profit also saw a drop of 15.63%, from Rs. 96 crore in Q2 FY24 to Rs. 81 crore in Q2 FY25.
Over the past five years, the company has delivered a compound annual growth rate (CAGR) of 21.71% in revenue and 33.52% in net profit.
In terms of return ratios, the company’s return on capital employed (ROCE) and return on equity (ROE) both stand at 24.1%. The debt-to-equity ratio is 0.91x, and the earnings per share (EPS) is Rs. 82.2.
Company Overview:
H.G. Infra Engineering Limited is an Indian company that specializes in the construction, development, and management of infrastructure projects. The company focuses on EPC (Engineering, Procurement, and Construction) and Hybrid Annuity Model (HAM) projects, undertaking work in roads, bridges, flyovers, railways, runways, and water pipelines.
The company operates in multiple states and is actively involved in key projects such as Gurgaon Sohna, Narnaul Bypass, and Jodhpur-Marwar.
Written By – Nikhil Naik
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