Multibagger stock: Shares of HG Infra Engineering Ltd, which have delivered multibagger returns in the long term, look set for further rally this year. HG Infra shares are expected to rise another 26% to Rs 1,783 in 2025, according to brokerage YES Securities. HG Infra shares have risen 120% in two years and gained 142% in three years. The multibagger stock rose 463% in the last five years.
HG Infra stock trades at Rs 1457.70 in the current session on BSE. Market cap of HG Infra stood at Rs 9,499 crore on BSE. The stock opened flat at Rs 1465 today. Total 111 shares of the firm changed hands amounting to a turnover of Rs 1.62 lakh in early deals today.
The stock has a beta of 1.3, indicating high volatility in a year. It is trading in neither in the overbought nor in the oversold territory with a RSI of 50.8. HG Infra shares are trading lower than the 5 day, 10 day, 20 day but higher than the 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
YES Securities cited strong order book of HG Infra behind its bullish stance.
"HGIEL boasts of a robust orderbook, of Rs 166.2 bn comprising of Rs 123.2 bn of roads and highways, Rs 23.8 bn from railways and metro and Rs 19.1 bn from solar projects. Its order book is well diversified as highways, railways, and solar projects constitute 75%, 14%, and 11% of the total order book, respectively. Further, the company is targeting an order inflow of Rs 110 to 120 bn for the full year and has already secured approximately 55 bn in projects from highways and 7.8 bn from the solar sector. Additionally, the company has already bid for projects worth Rs 300 bn and is awaiting results," said the brokerag.
HGIEL offers a strong investment case with its diversified order book, proven execution capabilities, and presence in high-growth infrastructure segments like roads, railways, and renewables.
HG Infra Engineering reported a 16% year-on-year (YoY) fall in net profit at Rs 80.7 crore in Q2 against a net profit of Rs 96.1 crore. The company's revenue from operations slipped 5.5% YoY to Rs 902.4 crore in the September 2024 quarter over Rs 954.5 crore in the corresponding period of the previous fiscal.
At the operating level, EBITDA was down 0.3% to Rs 219.5 crore in the second quarter of this fiscal over Rs 220.1 crore in Q2 of FY24.
HG Infra Engg. is engaged in the business of engineering, procurement and construction (EPC), maintenance of roads, bridges, flyovers and other infrastructure contract works.