Rs 10,000 crore order book: This multibagger civil construction company bags new orders worth Rs 1,472.22 crore from NHAI

The stock has a PE of 11.6x, an ROE of 29.4 per cent and an ROCE of 25.4 per cent.

H.G. Infra Engineering Limited (HGIEL) informed that the company bagged an order worth Rs 1,472.22 crore from the National Highways Authority of India (NHAI).

The first order is for an access-controlled highway of 4 lanes with paved shoulders from TN/AP Border to Puttur of NH-716 & 6 lanes with paved shoulders from Mallavaram to Renigunta of NH-71 in the State of Andhra Pradesh on hybrid annuity mode. The order is worth Rs 862.11 crore and will be completed within 24 months from LOI.

The second order is for the construction of a 4-lane elevated corridor of Kalimandir- Dimna ChowkBaliguma (Jamshedpur) Section of NH33 on EPC mode in the State of Jharkhand. The order is worth Rs 610.11 crore and will be completed within 30 months from LOI.

Earlier, the company bagged an order worth Rs 447.11 crore from South Central Railway. The order includes the doubling of track between Karanjgaon station at Aurangabad station including electrification and signalling work in connection with the Aurangabad Ankai doubling project in the Nanded Division of South Central Railway. The order has a length of 44.14 km and will be completed within 30 months from LOI.

H.G. Infra Engineering Limited (HGIEL) is an Indian road infrastructure company engaged in the business of engineering, procurement and construction (EPC) services, maintenance of roads, bridges, flyovers and other infrastructure contract works. The company has a market cap of over Rs 6,000 crore and reported amazing numbers in its Quarterly Results & annual results.

Order Book: The company’s order book stands at Rs 9,626.3 crore as of December 31, 2023. The orders are bagged from various clients across India, including NHAI, Adani, DMRC, RVNL and NCR. With the above orders, the company’s order book crosses over Rs 10,000 crore.

The net sales increased by 62.6 per cent to Rs 1,365 crore and the net profit increased by 6.3 per cent to Rs 493.19 crore in Q3FY24 compared to Q3FY23. In its annual results, the net sales increased by 23.21 per cent to Rs 4,622.01 crore and the net profit increased by 29.77 per cent to Rs 493.19 crore in FY23 compared to FY22.

As of December 2023, Abakkus Emerging Opportunities Fund – 1 (owned by a renowned ace investor, Sunil Singhania) owns a 1.47 per cent stake in the company. As of December 2023, FIIs have decreased their stake to 1.56 per cent and DIIs have decreased their stake to 12.45 per cent compared to September 2023.

Today, shares of H.G. Infra Engineering Ltd plunged 1.12 per cent to Rs 900 per share with an intraday high of Rs 933.40 and an intraday low of Rs 888.75. The stock has a PE of 11.6x, an ROE of 29.4 per cent and an ROCE of 25.4 per cent. The stock gave multibagger returns of 230 per cent in 3 years whereas BSE Industrials Index is up by 180 per cent. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.