Buy HG Infra Engineering, target price Rs 1202: Yes Securities

Yes Securities has buy call on HG Infra Engineering with a target price of Rs 1202.0. The current market price of HG Infra Engineering is Rs 950.

HG Infra Engineering , incorporated in the year 2003, is a Small Cap company (having a market cap of Rs 6184.41 Crore) operating in Infrastructure sector.

HG Infra Engineering key Products/Revenue Segments include Contract Revenue, Sale of services and Scrap for the year ending 31-Mar-2022.


Investment Rationale
the brokerage remains positive on the company given its 1) comfortable order book (~Rs126bn as on 4QFY23), 2) strong execution capabilities, 3) comfortable working capital cycle, 4) geographical diversification and 5) its transition into full-fledged contractor.

Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 1542.20 Crore, up 29.71 % from last quarter Total Income of Rs 1188.98 Crore and up 44.50 % from last year same quarter Total Income of Rs 1067.26 Crore. Company has reported net profit after tax of Rs 170.42 Crore in latest quarter.

The company’s top management includes Mr.Harendra Singh, Mr.Dinesh Kumar Goyal, Mr.Vijendra Singh, Mr.Ashok Kumar Thakur, Mrs.Pooja Hemant Goyal, Mr.Onkar Singh. Company has Price Waterhouse & Co as its auditors. As on 31-03-2023, the company has a total of 7 Crore shares outstanding.

Promoter/FII Holdings
Promoters held 74.53 per cent stake in the company as of 31-Mar-2023, while FIIs owned 1.34 per cent, DIIs 14.01 per cent.