3 HGINFRA share price target reports by brokerages below. See what is analyst's view on HGINFRA share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
We remain positive on the company given its 1) comfortable order book (~Rs61.6bn as on 3QFY20), 2) strong execution capabilities, 3) comfortable working capital cycle (~103days), 4) geographical diversification and 5) its transition into full-fledged contractor and improvement in technical pre- qualification. Given lower than anticipated execution in 9M largely due to NGT ban, we have revised our revenue/PAT estimates downwards by 5.4%/5.8% for FY20E. However, on the back of strong order book, healthy order inflows (~Rs20bn till date) and pick up in execution of large ticket size projects, we expect HGINFRA’s revenues/ PAT to grow at 19%/23% CAGR over FY19-22E. At CMP, the stock trades at a P/E of 10.3x/8.8x on FY20E/FY21E EPS and is trading at an EV of 5.8x/4.9x FY20E/FY21E EBITDA. We maintain BUY rating on the stock with a TP of Rs304.
Monetization of assets in the near future: Plans for monetization of the company’s HAM portfolio are under consideration. However, the company stressed on first achieving significant physical progress across the projects (~30-50%) which will make these projects an attractive proposition for the incoming investor. Attractive Valuation: HG Infra is trading at an attractive valuation of 7.1x FY21E P/E. We maintain BUY with Rs 441/sh TP (12x FY21E Standalone EPS and HAM projects at 1x invested equity).
We expect the revenue to grow at 15.8% CAGR during FY19-21E while EBITDA to grow at 15% CAGR. EBITDA margin is expected to stabilize around 15% levels by FY21E. Considering the healthy order book, proven execution capabilities, revenue visibilitycoupled with strong financials, we re-iterate a “BUY” rating with a target price of Rs. 300 based on a SoTP valuation.
HGINFRA continues to report steady performance mainly led by continuous traction in execution. We still expect its earning to clock 29% CAGR in next 2 years. At CMP, the stock trades at 9.0x of FY20 and 7.4x of FY21 earnings with >20% return ratio. We believe improvement in cash generation will be the key catalyst for re-rating. Keeping our estimates unchanged, we maintain BUY recommendation on the stock with an unrevised Target Price of Rs385 (15x of 1-Yr Fwd. EPS).
We expect revenue/ Adj. PAT CAGR of 23.9%/ 30.3% over FY19-21E. HGINFRA looks attractive at 11.3x/ 9.1x FY20E/ FY21E EPS, hence we maintain BUY, with a SOTP of Rs 456 (13x FY21E EPS) and 1xFY21E P/B for HAM equity investments.
While impact of high base is visible in the quarterly performance, we believe commencement of new order wins will further aid the Company to register a healthy growth, going ahead. We expect HGINFRA’s earning to clock 31% CAGR in next 2 years. Current valuation at 10.4x of FY20 and 8.4x of FY21 earnings with >20% return ratio and <2x book value undoubtedly appear to be attractive. We continue to maintain our BUY recommendation on the stock with a revised Target Price of Rs395 (15x of FY20 EPS).
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
DISCLAIMER: Information is provided "as is" and solely for informational purposes, not for trading purposes or advice, and may be delayed. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and FrontPage will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein.