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    Buy HG Infra Engineering, target price Rs 845: Axis Securities

    Synopsis

    HG Infra Engineering Ltd., incorporated in the year 2003, is a Small Cap company (having a market cap of Rs 3788.07 Crore) operating in Infrastructure sector.

    BuyAgencies
    Promoters held 74.53 per cent stake in the company as of 30-Jun-2022, while FIIs owned 0.58 per cent, DIIs 14.16 per cent.
    Axis Securities has buy call on HG Infra Engineering with a target price of Rs 845. The current market price of HG Infra Engineering is Rs 588.35. Time period given by analyst is one year when HG Infra Engineering Ltd. price can reach defined target.

    HG Infra Engineering Ltd., incorporated in the year 2003, is a Small Cap company (having a market cap of Rs 3788.07 Crore) operating in Infrastructure sector.

    HG Infra Engineering Ltd. key Products/Revenue Segments include Contract Revenue and Sale of services for the year ending 31-Mar-2021.


    Financials
    For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1067.26 Crore, up 11.14 % from last quarter Total Income of Rs 960.25 Crore and up .35 % from last year same quarter Total Income of Rs 1063.56 Crore. Company reported net profit after tax of Rs 103.95 Crore in latest quarter.

    Investment Rationale
    The company has a robust order book while it continues to diversify into other related segments by leveraging its proven execution capabilities. This will provide the company with revenue visibility for the next two to three years. The company is well-aligned to achieve growth by capitalizing on favourable industry tailwinds which are being created by the government’s thrust on developing infrastructure, especially on the highways, expressways, and other road projects. The brokerage expects HGIEL to report Revenues/EBIDTA/APAT growth of 28%/26%/33% CAGR respectively over FY21-24E. It values HGIEL EPC business at 9x FY24 EPS and HAM portfolio at 1x book value with a target price of Rs 845/share, implying an upside potential of 56% from the CMP.

    Promoter/FII Holdings
    Promoters held 74.53 per cent stake in the company as of 30-Jun-2022, while FIIs owned 0.58 per cent, DIIs 14.16 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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