1072.1000 -8.10 (-0.75%)
NSE May 09, 2025 15:31 PM
Volume: 54,261
 

1072.10
-0.75%
HDFC Securities
HG delivered an inline performance during 1QFY20. The NWC days remained stable at 100 as Rajasthan State project contributed 38%/33days to debtor days. HG expects to realize it soon and revert to 60-65days of NWC. About Rs 23bn of orders will move into execution from 3QFY20-end, leading to a strong pickup in revenue from 2HFY20. The EPC bid pipeline is robust (HG plans to bid for ~Rs 500bn in EPC and selectively in HAM, post FC of 2 HAM). HG has received term sheet for 2 HAM projects and FC will get announced in Sep-19. We maintain BUY. Key risks (1) Slowdown in NHAI ordering; (2) High interest rates; and (3) Delay in appointed dates for HAM. HG Infra reported Rev/EBIDTA/APAT beat of (8)/(6.1)/0.1% vs our estimates. Higher EBIDTA margins (+30bps vs estimate), stable interest cost/depreciation resulted in inline profits. We maintain BUY on HG with SOTP of Rs 462/Sh, valuing the EPC business at 15x FY21E EPS.
HG Infra Engineering.. has an average target of 1617.80 from 5 brokers.
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