Rs 15,080 Crore Order Book: Solar Battery Energy Infra Company Has Been Declared a Qualified Bidder by Gujarat Urja Vikas Nigam Ltd

The stock is up by 30 per cent from its 52-week low of Rs 921 per share and has given multibagger returns of over 500 per cent in 5 years.

H.G. Infra Engineering Limited (HGINFRA) has been awarded the qualified bidder status by Gujarat Urja Vikas Nigam Ltd to undertake a major project of setting up 300 MW/600 MWh Standalone Battery Energy Storage Systems in Gujarat. This project is part of a bigger 500 MW/1000 MWh initiative that is being implemented through Tariff-Based Global Competitive Bidding (Phase-VI). The contract that was awarded by a domestic entity is expected to take 24 months to complete. This development marks a strategic expansion for HGINFRA, which is traditionally known for its expertise in road construction and infrastructure projects. The company’s expansion into battery storage systems is a move that is in line with its overall strategy to diversify its business and increase its portfolio in other infrastructure areas such as solar power and railways. This move is expected to increase HGINFRA’s order book and therefore its ranking in the competitive infrastructure sector.

About the Company

H.G. Infra Engineering Limited is one of the major Indian companies that are into Engineering, Procurement, and Construction (EPC) services, with a main focus on road infrastructure. The company has expanded its portfolio to include railways, metro, solar power, and water projects, and has completed more than 10 HAM projects and has 26 ongoing projects in 13 Indian states. As a result of this, HGINFRA is a pre-qualified bidder for large EPC and HAM projects and has been accredited as an AA-class contractor by the Government of Rajasthan and an SS-class contractor by the Military Engineer Services. As of Q3 FY25, the company has an order book of Rs 15,080 crore and the majority of the orders are for highway projects. Some of the company’s recent strategic moves include winning orders of the tune of Rs 8,200 crore in road, solar, and battery energy storage systems. The company plans to increase revenue by 17 per cent to 18 per cent and expects an order inflow of Rs 11,000-12,000 crore in FY25, with a focus on increasing its non-road project portfolio.

Order Book: The company’s order book stands at Rs 15,080 crore as of December 31, 2024. The orders are bagged from various clients across India, including National Highways Authority of India (NHAI), Adani, Delhi Metro Rail Corporation (DMRC), Ministry of Road Transport & Highways, Government of India (MoRTH), Maharashtra State Road Development Corporation (MSRDC), Central Railway (CR), South Central Railway (SCR), Rail Vikas Nigam Ltd (RVNL), Jodhpur Vidyut Vitran Nigam Limited (JDVVNL) and North Central Railway (NCR).

As of December 2024, Abakkus Emerging Opportunities Fund – 1 (owned by a renowned ace investor, Sunil Singhania) owns a 1.33 per cent stake in the company. The stock has an ROE of 24 per cent and an ROCE of 24 per cent. The stock is up by 30 per cent from its 52-week low of Rs 921 per share and has given multibagger returns of over 500 per cent in 5 years. Investors should keep an eye on this small-cap stock.

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