HG Infra Engineering Ltd. share price target

We recommend a Buy the stock for a target price of Rs 680 implying an upside of 11% from CMP

We retain a BUY rating on the stock with a target price of Rs 890/share, implying an upside of 41% from the CMP.

We initiate coverage with a BUY rating and value the company's EPC business at 11x FY24E EPS and HAM portfolio at 1x book value to arrive at a target price of Rs 855/share. TP implies an upside potential of 50% from the CMP.

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Given robust 1Q performance, comfortable order book and strong bid pipeline management is confident of achieving its revenue guidance of Rs32-33bn. HGINRA reported stellar quarterly performance beating our and street estimate owing to robust execution of its under-construction portfolio despite...

HG Infra Engineering (HG Infra) reported a robust set of Q4FY21 numbers. Standalone revenue improved 65% YoY to | 1,027.8 crore, clearly reflecting the sharp pickup in execution aided by healthy order book position and normalisation of labour availability/raw material supply chain post Covid-19 related disruptions. Also, operating profit margin was at an elevated 16.2%, down 8 bps YoY, on account of better project mix. At PAT level, robust operating performance translated into 90.5% YoY growth (to | 97.7 crore)....

We expect strong execution in Q4FY21 for our infra coverage universe with expected revenue growth of 22.2% YoY (average) vs 6.1% in Q3FY21. Operating leverage will enable stable EBITDA margins despite inflationary environment. Adjusted PAT is expected to increase by 87.5% YoY led by...

HG Infra's pre-qualification to bid independently for NHAI's projects has improved by a whopping 8x to | 2,000 crore in FY15-20. This is likely to aid the company with a) eligibility to bid for most road projects (>95% of total NHAI's awards have order value