HG Infra Engineering: A Stock with ₹15,000 Cr Order Book, Trading at a 42% Discount – Should You Watch It?
Introduction
HG Infra Engineering : Public infrastructure plays a pivotal role in a country’s economic growth by enhancing connectivity, facilitating trade, and improving overall quality of life. India, being one of the fastest-growing economies, has seen significant infrastructure investments in recent years. In 2023-24 alone, total infrastructure spending reached ₹10 lakh crore.
Among the key players in the infrastructure sector, H.G. Infra Engineering Ltd has emerged as a strong contender with a massive order book and solid financial performance. Currently, the stock is trading at a significant 42% discount from its 52-week high, making it an attractive watchlist candidate for investors. Let’s delve deeper into the company’s financials, recent developments, and growth outlook.
Price Action & Market Performance
H.G. Infra Engineering Ltd has demonstrated impressive returns over the past few years:
- Stock Price: ₹1,030 per share (as of Tuesday)
- Market Capitalization: ₹6,712.95 Crores
- 3-Year Returns: 86%
- 5-Year Returns: 376%
- Current Discount: 42% from its 52-week high of ₹1,879.90
Despite the stock’s recent correction, its strong fundamentals and order book make it an interesting pick for investors seeking value in the infrastructure sector.
Total Order Book & Composition
One of the key strengths of H.G. Infra Engineering Ltd is its robust order book, which reflects future revenue visibility.
- Total Order Book (as of December 2024): ₹15,080 Crores
- Order Book to Market Cap Ratio: 2x (Order book is twice its market capitalization)
- Major Clients: Government entities, PSUs, and private players like NHAI, Adani, RVNL, MoRTH, and DMRC.
Breakdown of the Order Book:
- Roads & Highways: ₹11,234.7 Crores (75% of total orders)
- Railways & Metro: ₹2,289 Crores (15% of total orders)
- Solar Projects: ₹1,556.3 Crores (10% of total orders)
Project Type Segmentation:
- Public Sector Orders: 94%
- Private Sector Orders: 6%
- Hybrid Annuity Model (HAM) Projects: 33%
- Engineering, Procurement, and Construction (EPC) Projects: 67%
Recent Developments & Growth Prospects
H.G. Infra Engineering Ltd has been actively securing large-scale projects, positioning itself as a strong infrastructure player.
Key Project Wins in 2025
- February 2025: Won a ₹2,469 Crore project for the redevelopment of New Delhi Railway Station in collaboration with D.E.C. Infrastructure.
- January 2025: Secured a 250 MW/500 MWh Battery Energy Storage System (BESS) project from Gujarat Urja Vikas Nigam Ltd.
- FY25 Order Inflow Target: ₹11,000-12,000 Crores
- New Orders Secured in FY25: ₹8,200 Crores (including the New Delhi Railway Station project)
The company’s diversification into renewables, transmission, and water infrastructure indicates a strategic shift towards long-term growth.
Financial Performance & Valuation
Despite a slight decline in revenue, H.G. Infra Engineering Ltd has shown robust profit growth.
- Revenue (Q3FY25): ₹1,265 Crores (↓ 7.3% YoY)
- Net Profit (Q3FY25): ₹115 Crores (↑ 27% YoY)
- EBITDA Margin Guidance: 15-16%
- Revenue Growth Expectation (FY25): 17-18%
Key Financial Ratios (as of 2025)
| Metric | Value |
|---|---|
| Market Cap | ₹6,700 Cr. |
| Current Price | ₹1,028 |
| 52-Week High/Low | ₹1,880 / ₹855 |
| Stock P/E | 12.2 |
| Book Value | ₹413 |
| Dividend Yield | 0.14% |
| ROCE | 24.1% |
| ROE | 24.1% |
| Debt to Equity | 0.91 |
| Promoter Holding | 71.8% |
| Pledged Shares | 0.00% |
| Intrinsic Value | ₹1,718 |
| Industry P/E | 18.5 |
| PEG Ratio | 0.37 |
| 200-DMA | ₹1,311 |
| Free Cash Flow (3Yrs) | ₹-1,180 Cr. |
| Free Cash Flow (5Yrs) | ₹-1,254 Cr. |
| Debt | ₹2,447 Cr. |
Future Outlook & Conclusion
H.G. Infra Engineering Ltd has a strong pipeline of projects, which ensures stable revenue visibility and sustained profit growth. With a 42% discount from its peak, the stock looks attractive for long-term investors who believe in India’s infrastructure growth story.
Reasons to Watch H.G. Infra Engineering Ltd
✅ Strong Order Book (₹15,080 Crores)
✅ Diversified across Roads, Railways & Renewable Energy
✅ Government-backed projects ensure stability
✅ Healthy financials & improving profitability
✅ Trading at a 42% discount – Value Buy?
While the company’s debt levels and negative free cash flow pose concerns, its robust earnings growth, high ROE/ROCE, and strategic expansion into new sectors make it a stock worth tracking.
Q&A Section for Easy Understanding
Q1: Why is H.G. Infra Engineering Ltd a good stock to watch?
✅ It has a massive ₹15,080 Crore order book, is trading at a 42% discount, and has a strong track record of revenue and profit growth.
Q2: How has the stock performed in the past?
✅ 3-Year Returns: 86%
✅ 5-Year Returns: 376%
Q3: Who are its major clients?
✅ Government entities like NHAI, RVNL, MoRTH, DMRC, and Adani.
Q4: What is the financial health of the company?
✅ ROE & ROCE: 24.1%
✅ Stock P/E: 12.2 (cheaper than industry average of 18.5)
✅ Debt-to-Equity Ratio: 0.91 (manageable debt level)
Q5: What is the future growth outlook?
✅ The company expects 17-18% revenue growth in FY25 and aims to expand into transmission and water projects.
Q6: What risks should investors be aware of?
❌ Debt levels are relatively high at ₹2,447 Crores.
❌ Negative free cash flow, meaning high capital requirements.
❌ Dependence on government contracts (94% of orders).
Final Thoughts: Should You Invest?
H.G. Infra Engineering Ltd presents a compelling investment opportunity with strong earnings growth, high order visibility, and a dominant position in the infrastructure sector. However, investors should weigh the risks of debt and cash flow concerns before making a decision. Adding this stock to your watchlist could be a smart move for long-term investors looking for value in the infrastructure space.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.