New Cap Ex being infused, company has managed to secure more diversified orders.
Due to first the Assembly Elections and then the Maharashtra Elections cap ex was freezed, after latest election win for BJP they have again secured their foothold and will now start moving money to ambitious projects and Infra. Recent Order win and spike in similar space stocks like LT is an ode to the same
One doubt that I have is the excessive taxation laws coming in to the picture- Is the government cash reserves at a low? Or the Government is trying to do more with taxpayers money?
Even the stock price is available at a discount I feel.
Disc. Adding on Dips/ Already Invested
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Expecting the order inlow in next 40 days of this financial year. Even pnc infra management guide for the same.
They are even looking for other sectors such as solar, water and transmission to increase there revenue and footprints in market.
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I was checking this company out.
Market Cap ₹ 6,534 Cr. and order book of Rs. 1,50,800Mn which is ₹ 15,080 Cr, looking at the execution of 6-7K Cr a year, puts approx 3 years of Work orders.
The other thing which I was looking is reduction in DII holding and a minor reduction of Promoter holding.
Valuation wise, PE on the face looks nice now with the fall. But looking at the Mcap to Sales, currently sitting at 1.2, but would prefer to buy around 0.8 times.
Debt is there but not so worried of Debt in reverse Interest Cycle and kind of projects they do.
Any suggestions on the quality of company and good price to get in?
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Really good management, they do not try to fool the investors, they are here to play the long term game. started as a sub contractor and reached this point, still expanding in to multiple segments of infra industry, like soar railways, etc. listen to the concall’s.
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The actual problem is negative Cash from operation due to working capital. CFO / EBITDA (-) 0.62X and
EV/EBITDA at current price ~ 10x.
However Good management, good corporate governance and every quarter they are briefing about the business
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On 11 June 2025
H.G. Infra wins 35-year Rs. 431.11 mn/year transmission contract in Odisha under ERGS-I scheme.
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On 23 June
H.G. Infra awarded Rs.117.77 Cr MES contract for Integrated Material Handling Facility, 30-month tenure.
HG Infra Concall Highlight:
On Diversification
- We have now diversified into a critical infrastructure domain,
such as railways, metro, renewable energy and transmission projects.
- Driven by strength, agility and steady growth, we are poised to capture emerging opportunities in renewables, power transmission and road sector as well as metro and urban infra. With proven execution, technical expertise and industry expertise, we are ready to deliver large-scale infrastructure projects that power India’s long-term development vision.
- Our historical dominance in roads and highways continues to drive core growth, but we are not resting on our laurels. Recognizing increased competition and margin compression, we are taking proactive steps to reshape our portfolio for a long-term value creation. We are aggressively entering into high-growth decent margin sector like BESS and transmission and distribution, capitalizing on our deep engineering roots and a proven execution track record.
This is not just diversification and it’s a targeted expansion into future profit pools. Our relentless focus on strategic bidding, cost control and technology-driven project management is designed to project – to protect and expand margins, minimize the debt, maximize shareholders return.
On Debt reduction and moving in the direction of Asset Light
- So our goal was to secure a partner who could provide both financial strength and the sector expertise to maximize value of our stakeholders. It is our pleasure to inform you that during this week, we executed a binding offer document with Neo Infra Income Opportunities Fund. Under this agreement, Our holdings company, H.G. will sell 100% of its equity stake in the five wholly owned subsidiaries managing this HAM assets.
Guidance:
- We are confident aiming for order inflow of around INR11,000 crores in FY26 with clear data-backed strategy to secure 75% from roads and railways where our execution capacity outpaces competitors and 25% for rapidly expansion – expanding verticals.
- Revenue FY26: It is around INR 7,000 crores of – because we did around 13.5% year-on-year for the quarter 1 and almost will remain in this range only.
- And we are doing such projects and with the margins probably in the range of 15% to 16%. We are quite hopeful that by the year-end, we would be maintaining the same state.
My take
- Company is in Hard Working Sector where it has so far executed well.
- Company is eying for Asset Light model i.e. focusing on core strength, Execution.
- Targeting for strong Diversification and if done successfully then can see P/E rerating.
- Getting Good Order and available at reasonable value.
- Company is facing relatively high D/E 1.41 at Console and 0.37 at Standalone While Debt to Ebitda 3.88 at Console and 1.11 at Standalone level. It is to be closely watched.
I am invested and hence may have biased view. Also I am beginner and hence may have missed something, request you to help me in this.
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NHAI declared appointed date 30-09-2025 for 28.70 km, INR 925.11 Cr HAM project, 730-day completion. &
Subsidiary received PCC-1 for Rs1060.11 Cr NH-130 CD six-lane project; commercial from 23-May-2025.
