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 2QFY20. About Rs 32bn of orders are expected to move into execution during 3QFY20, leading to a strong pickup in revenue from 4QFY20. The EPC bid pipeline is robust (HG hopes to secure EPC orders of ~Rs20bn and HAM orders of ~Rs10bn during 2HFY20). HG has received FC for its 2 HAM projects from 2 leading banks, highlighting the company's ability to secure funding in a market which values Infra companies with strong execution capabilities as well as strong financial health. We maintain BUY. Key risks (1) Further delay in NHAI ordering activity; (2) Delay in appointed dates for the company's HAM and EPC projects. HG Infra reported Rev/EBIDTA/APAT beat of 1/3/8.5% vs our estimates. Higher EBIDTA margins (+35bps vs estimate), stable interest cost/depreciation resulted in APAT beat. We maintain BUY on HG with SOTP of Rs 441/Sh, valuing the EPC business at 12x FY21E EPS.
HG Infra Engineering.. has an average target of 1617.80 from 5 brokers.
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