September 10, 2024
New Delhi, India
HG Infra Shares
Shares of HG Infra Engineering Ltd. rose by over 7% to ₹1,575 per share on September 10 after the company announced it had won a major ₹781 crore contract from the Ministry of Road Transport and Highways (MoRTH). The contract involves upgrading a 10.63 km stretch of National Highway 47 (NH-47) in Gujarat, specifically between the Narol and Sarkhej junctions.
Project Highlights:
- Scope of Work: Upgrading a 10.63 km section of NH-47, including constructing an elevated corridor.
- Project Model: The contract will be executed under the Hybrid Annuity Model (HAM).
- Timeline: Expected completion within 2.5 years.
HG Infra has been actively securing large projects. In August, it was the lowest bidder for another road project in Gujarat, estimated at ₹883.24 crore, with a bid of ₹781.11 crore.
Company Background:
Headquartered in Rajasthan, HG Infra Engineering specializes in infrastructure services, including highways, roads, bridges, runways, and water pipelines. The company also handles rehabilitation and upgradation projects, strengthening its foothold in the Indian infrastructure sector.
Financial Performance:
- Revenue Growth: 13% YoY increase in revenue to ₹1,528 crore for the June quarter of FY25.
- Profit Growth: Net profit rose over 8% YoY to ₹162.6 crore.
- EBITDA: Climbed 12.1% YoY to ₹332 crore, with EBITDA margins improving to 19.5%.
Stock Performance:
HG Infra’s stock has risen 72% this year, outperforming the Nifty 50 index, which gained 16% during the same period. The stock reached a 52-week high of ₹1,880 on July 16, 2024.
HG Infra’s latest contract win underscores its robust growth trajectory and strong presence in India’s infrastructure development sector.
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