HG Infra Engineering Ltd. share price target

Beating ARe, HG Infra’s Q1 ~Rs17.1bn revenue (up 13.5% y/y) reflects its strong execution abilities. The dip in the 13.8% EBITDA margins (16.2%, Q1 FY25) is attributed to one-time provisions.

HGIEL posted 14%/1% YoY revenue/EBITDA growth in Q1FY26 to Rs17.1/2.5bn, respectively, while RPAT stood at Rs1.3bn.

HG Infra (HGIEL) Q1FY26 performance was mixed, with a softer undertone despite healthy standalone revenue growth. On a standalone basis, revenue came in at Rs17,092.4mn, representing a 13.5% YoY increase but a 13.4% sequential decline. Profit after tax fell 10.1% YoY and 40.9% QoQ to Rs1,254.7 mn, as EBITDA margins contracted to 13.8% from 15.9% a year earlier. The fall in profitability was largely driven by a Rs43 crore one-off margin correction in the Ganga Expressway project due to a change in law provision, alongside higher finance costs and impairment provisions on receivables. Standalone PAT...

Order awarding in the road sector has been soft for the past two years, impacting HG Infra’s (HG) order book (OB), now at INR 147bn (2.2x TTM revenues) – part of this (INR 31bn) is yet to receive appointed date.

We maintain our BUY rating on HGIEL with a target price of Rs 1,155/share. The TP implies an upside of 10% from the CMP.

A steady execution pace, continued operating profitability and steady orders make HG Infra’s FY25 results comforting with one-off margins in Q4. This sets the tone for an even better performance ahead.

We maintain our BUY rating on HGIEL with a target price of Rs 1,201/share. The TP implies an upside of 10% from the CMP.

We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock.

We re-initiate coverage on HG Infra (HGIEL) with a BUY and SOTP-based TP of
Rs2,100/sh. HGIEL’s makeover from a small subcontractor into a diversified
infra play offers best-in-class operating & financial metrics and has supported
swift, stress-free growth.

We maintain our BUY rating on HGIEL and value its EPC business at 10.5x FY26E EPS and HAM/Solar portfolio at 1.2x/1x book value to arrive at a target price of Rs 1,320/share. The TP implies an upside of 12% from the CMP.