Shares of HG Infra Engineering are poised to attract attention on September 10 following the company’s recent contract win valued at Rs 781 crore from the Ministry of Road Transport & Highways (MoRTH). The contract involves the upgrade of a 10.63 km stretch of National Highway 47 (NH-47) in Gujarat, specifically from Narol to Sarkhej junctions. The project includes the construction of an elevated corridor and will be executed under the hybrid annuity model (HAM). It is expected to be completed in 2.5 years.
This contract is continuing the winning spree of HG Infra for big contracts. Last month, it was declared the lowest bidder for another road project in Gujarat, where MoRTH estimated the project cost at Rs 883.24 crore while HG Infra successfully bid for Rs 781.11 crore.
With its headquarters in Rajasthan, HG Infra Engineering has earned a name for itself in the construction of infrastructure projects, from highways and roads to bridges and runways, land development, and water pipelines. The company gained credence with some of the finest rehabilitation and upgradation projects and emerged stronger in the Indian infrastructure sector.
HG Infra reported strong performance on the financial side for the June quarter, according to a report. Revenues increased 13% YoY to Rs 1,528 crore. Net profit was up 8% YoY to Rs 162.6 crore, while EBITDA rose 12.1% YoY to Rs 332 crore. There was also an improvement in EBITDA margin by 20 bps to 19.5%, indicating healthy cost efficiency too.
Analysts remain upbeat on this stock as 13 out of 14 brokerage firms have an Buy recommendations while only one grades the stock a Hold rating. The stock has gained 72 percent year-to-date, far surpassing the 16 percent rally in the Nifty 50 in the same period. In July 2024, the stock touched a 52-week high of Rs 1,880 every share.
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Source: Moneycontrol
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