Rs 15,641.80 crore order book: This multibagger civil construction company bags new order worth Rs 781.11 crore from MoRTH

The stock is up by 81 per cent from its 52-week low of Rs 806 per share and gave multibagger returns of over 650 per cent in 5 years.

On Monday, shares of H.G. Infra Engineering Limited (HGIEL), plunged 2.37 per cent to 1,456.95 per share from its previous closing of Rs 1,492.25 with an intraday high of Rs 1,486.10 and an intraday low of Rs 1,441.65. The stock’s 52-week high is Rs 1,880 and its 52-week low is Rs 806.

H.G. Infra Engineering Limited has secured a significant contract valued at approximately Rs 781.11 crore from the Ministry of Road Transport and Highways (MoRTH) to upgrade a 6-lane highway section in Gujarat, India. The project entails the construction of an elevated corridor and the improvement of the existing road between Narol Junction and Sarkhej Junction. This infrastructure development initiative is being executed under the Hybrid Annuity Model (HAM), a public-private partnership framework where the government provides initial funding and the private partner assumes responsibility for the operation and maintenance of the completed infrastructure. The project is expected to be completed within 2.5 years, and it is anticipated that the upgraded highway will enhance connectivity and facilitate economic growth in the region.

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 9,000 crore and reported amazing numbers in its Quarterly Results & annual results.

Order Book: The company’s order book stands at Rs 15,641.80 crore as of June 30, 2023. The orders are bagged from various clients across India, including NHAI, Adani, DMRC, RVNL and NCR.

The net sales increased by 13.1 per cent to Rs 1,528 crore and the net profit increased by 8.1 per cent to Rs 162.6 crore in Q1FY25 compared to Q1FY24. 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 June 2024, Abakkus Emerging Opportunities Fund – 1 (owned by a renowned ace investor, Sunil Singhania) owns a 1.35 per cent stake in the company. As of June 2024, FIIs have increased their stake to 2.04 per cent compared to 1.68 per cent in March 2024. The stock has an ROE of 27 per cent and an ROCE of 32 per cent. The stock is up by 81 per cent from its 52-week low of Rs 806 per share and gave multibagger returns of over 650 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. 

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