Rs 12,434 crore order book & FIIs increase stake: This multibagger civil construction company bags new order worth Rs 709.11 crore from East Central Railway
The stock gave multibagger returns of over 100 per cent on a YTD basis whereas BSE Sensex Index is up by 11.4 per cent.
On Monday, shares of H.G. Infra Engineering Limited (HGIEL) gained 2.56 per cent to 1,738.80 per share from its previous closing of Rs 1,695.40 with an intraday high of Rs 1,755.10 and an intraday low of Rs 1,701. The stock’s 52-week high is Rs 1,880 and its 52-week low is Rs 806.
H.G. Infra Engineering Limited was awarded a project by East Central Railway to construct a double line track in the Gaya-Son Nagar section of Bihar. The project involves building a new third and fourth track, including earthwork, blanketing, minor and major bridges, electrification works, and other miscellaneous works. The new track will be designed to handle a 32.5 T axle load and will include electrical traction (2x25 KV). The project is estimated to cost Rs 709.11 crore and is expected to be completed in 36 months. The appointed date for the project commencement was June 22, 2024.
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 11,000 crore and reported amazing numbers in its Quarterly Results & annual results.
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Order Book: The company’s order book stands at Rs 12,434 crore as of March 31, 2023. The orders are bagged from various clients across India, including NHAI, Adani, DMRC, RVNL and NCR.
The net sales increased by 11.3 per cent to Rs 1,708.26 crore and the net profit increased by 11.4 per cent to Rs 189.90 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 16.4 per cent to Rs 5,378.48 crore and the net profit increased by 9.4 per cent to Rs 538.22 crore in FY24 compared to FY23.
As of March 2024, Abakkus Emerging Opportunities Fund – 1 (owned by a renowned ace investor, Sunil Singhania) owns a 1.44 per cent stake in the company. As of March 2024, FIIs have increased their stake to 1.68 per cent compared to 1.34 per cent in March 2023.
The stock has an ROE of 24 per cent and an ROCE of 24 per cent. The stock gave multibagger returns of over 100 per cent on a YTD basis whereas BSE Sensex Index is up by 11.4 per cent. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
Also Read: Rs 70,000 crore order book: LIC-backed multibagger civil construction stock gains over 8 per cent; Earlier bagged orders from Navodaya Vidyalaya Samiti & NIT Patna