One of the leading infrastructure stock is in focus after it laid out its plan for its future. From revenue to its capex plans, it has laid out its plan, which will help it to deliver extra returns for its shareholders, which is currently trading at a discount of 43 percent from its all-time high.
With a market capitalization of Rs 7,012 crores, the shares of HG Infra Engineering Ltd are currently trading at Rs 1,076 per share, down by 42.8 percent from its 52-week high of Rs 1,879.90 per share. Over the past five years, the stock has delivered a return of 433 percent.
What has the company quoted?
The company states that for FY26, it is targeting a total order inflow of Rs 11,000 crores, with 70 percent and 30 percent contributions from roads & railways, and from other sectors respectively. It also guided that it plans to maintain its EBITDA margin by 15-16 percent and achieve a revenue growth of 17-18 percent during the same period.
For FY27, it said that the company is confident enough to hit a revenue target of Rs 8,000+ crore if order inflows are materialised. It stated that around 16,000 crores of bids have been submitted successfully and has a bid pipeline of Rs 80,000 crores for NHAI. On the CapEx side, it quoted that it doesn’t have any plans for huge CapEx now, however, it said that it will keep around 20-25 crore for meeting such requirements in the future.
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Financial Performance
The company reported a revenue decline of 6 percent to Rs 5,056 crores in FY25 from Rs 5,378 crores in FY24. Additionally, it reported a net profit decline of 6.30 percent to Rs 505 crores in FY25 from Rs 539 crores in FY24.
It reported the lowest quarter profit on Q2 FY25 of Rs 81 crores; however, since that the company has reported back-to-back increasing profits during the next two quarters, which is a positive sign of recovery.
Additionally, the company has a high debt-to-equity ratio of 1.41x, which is higher than its industry average, however, it offsets by its high interest coverage ratio of 3.51x and current ratio of 1.58x, signalling efficient debt maintenance.
H.G. Infra Engineering Limited is an infrastructure company that operates in engineering, procurement, and construction (EPC) spaces throughout India. The company pursues civil construction projects, such as roads, highways, bridges and flyovers, and railways, under both a turnkey basis, and hybrid annuity model. The company also undertakes metro, solar power plant, and water sector infrastructure projects.
Written by Satyajeet Mukherjee
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