Inspite of delivering excellent output why this stock price not growing?
My views,
- Have shared my reason earlier on HGINFRA.
- Apart from the above, there is lack of order inflows from NHAI this year, which has been one of the reason for underperformance of road infra stocks, in my view.
having Said that, if NHAI come close to their 6000 km order target, then road infra companies will have a great order inflow this quater and they may give some outperformance.
Disc: Invested in HGINFRA since about 200 levels.
3 Likes
thanks 
I want to hold it for 2 years more.
I think most of the orders are delayed keeping in mind of general elections…Most of the orders will start flowing in this quarter with feel good factor for central government.
Orders have certainly picked up both road and rail.
1 Like
Sharing with you some numbers of #HGINFRA
● Imorovement in orderbook
As of Dec 2022 = their orderbook was 98% Road, 2% Rail
As of Dec 2023= Their orderbook was 87% Road + 13% Railways
As of today= Their orderbook is 72% Road + 22% Railway + 6% Solar
● Orders received in last 3 months
Railway= 1872 Cr
Highway= 1472 Cr
Solar= 1560 Cr ( Joint venture )
As of today their orderbook
Road= 9940 Cr ( less this quater )
Railway= 3000 Cr ( less this quater )
Solar= 1560 Cr ( Joint venture )
Current orderbook is at about 2X/ FY 25 sales & much better award wins are expected in FY25 after election
In last concall, company has guided for 6k Cr topline, 15-16% Ebidta, 10-11% PAT FY 25
Disc: Invested since 2021 - sold some last yr ( to make my invested capital free at about 4x gains & to invest that in other sector ) now adding on dips this year, as orderbook looks much diversified, May be biased - sharing for learning
4 Likes
Tried digging up the details of the JV but to no avail. Two things, a) the Solar order value I believe is inclusive of GST, so net of GST the actual order value would be close to 1320 Cr; b) The share of HG Infra is unknown meaning the order value on their books will be significantly lesser than 1320, am I right?
I’ve been tracking this company for a while now but the market seems to be favoring ITD Cementation among the infra pack 
1 Like
Even I couldn’t find JV details & hence taken 50:50 jv assumption for the calculation of orderbook.
Now even at 1320 Cr, they need to execute it within 12 months - so it makes 10% of their revenue for FY 25 - which is good considering their first year in this segment ( calculations are based on 50:50 jv assumption - which I havent verified )
On ITD cementation - They have very good diversified orderbook and thats why they enjoy premium. Infra companies with good diversification is a positive factor in their valuation
4 Likes
