Emkay Global Assigns Buy On Small Cap Infra Stock, Target Price Rs 1130

Broking firm Emkay Global Financial Services has placed a 'buy' call on HG Infra Engineering Ltd. with a target price of Rs 1,130 apiece. The stock is showing 32% upside potential from its current level.

HG Infra Engineering is a midcap Infrastructure sector company. The company is engaged in the business of Engineering, Procurement and Construction (EPC) Services, Maintenance of roads, bridges, flyovers and other infrastructure contract works. It has a market valuation of Rs. 5,620.68 crore

Buy for a target price of Rs. 1,130 apiece

According to Emkay Global, HG Infra, having demonstrated its execution capabilities in the roads sector with 26%/38% revenue/PAT CAGR (FY19-23), is steadily adopting the diversification strategy - Over FY23, it bagged orders worth Rs15bn in the rail/metro segments, thus opening up larger avenues of growth ahead.

"HG targets non-roads inflow at 20-25% of the overall inflows, in coming years. Further, it recently entered into a share purchase agreement for four HAM projects at 1.55x P/B which, we believe, will give investors' confidence on the company's bidding strategy for HAM projects," the brokerage has said.

It added, "Given that HG Infra is expected to bid for more projects during FY24 vs FY23 in both, the roads and rail sectors, and that tendering in the roads sector (Apr-May '23) is up 25% YoY, its FY24 inflow target of Rs80-90bn looks achievable. We have a BUY with TP of Rs1,130."

Stock Movement

On NSE, the current market price of HG Infra Engineering is Rs 862.45 apiece. It surged 0.2% in the past 5 days, while declined 7.29% in the past 1 month. It jumped 62.01% in the past 1 year. It gave a robust return of 354.52% in 3 years. In 5 years, it gave 215.05% positive return.

Its 52 week low is Rs. 511 apiece, which it recorded on 1 July 2023 and 52 week high is Rs. 978 apiece, which it recorded on 1 May 2023.

Disclaimer - The stock has been picked from the brokerage report of Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.