H.G. Infra Engineering Ltd : Paving the Path to Success

Stock Opportunities Not-so-Hidden Gems
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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

2 Likes
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H.G. Infra Engineering – Order Inflow & FY26 Guidance

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  • FY25 Order Inflow:
    • Initially guided for ₹11,000-12,000 Cr, but still short by ₹3,000-3,500 Cr.
    • New railway station order worth ₹8,200 Cr (including MSRDC order) will bridge the gap.
    • Expecting ₹2,000-3,000 Cr in new orders within the next 45-50 days.
  • FY26 Guidance:
    • Order inflow target: ₹10,000 Cr
    • Revenue execution target: ₹7,000 Cr
    • EBITDA Margins: Expected to remain stable at 15-16%.
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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.

2 Likes
45

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.

1 Like
47

Thanks, Are you invested?

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Yes, from lower level.