HG Infra Engineering shares jump over 5% on winning new bid

Shares of HG Infra Engineering soared over 5 percent in intra-day trading on Thursday after the company announced its emergence as the lowest bidder (L-1) for a project by the Ministry of Road Transport and Highways (MORTH). The project, estimated by MORTH to cost ₹898.5 crore, saw HG Infra's winning bid at ₹763.11 crore.

In an exchange filing, HG Infra stated, "We are pleased to inform you that HG Infra Engineering Limited (the Company or HG Infra) has been declared as L-1 bidder by the Ministry of Road Transport and Highways (MORTH) for a project.” 

The stock rose as much as 5.4 percent to an intraday high of ₹1,729.55. It is now just 8 percent away from its 52-week high of ₹1,880.00, hit earlier this month (July 16). Meanwhile, it has surged almost 115 percent from its 52-week low of ₹806.00, hit in December last year.

The stock has rallied 74 percent in the last year and 104 percent year-to-date in 2024. It has, however, lost 3.5 percent in July so far, snapping a four-month streak of gains. It jumped 17 percent in June, 27 percent in May, 31 percent in April, and 3 percent in March. However, it shed 5.5 percent in February but zoomed 10 percent in January.

The project involves the improvement and upgradation to a two-lane configuration with paved shoulders of the newly declared NH227B Bahuvan Madar Majha to Jagarnathpur "84 Kosi Parikrama Marg" in Uttar Pradesh on Hybrid Annuity Mode (HAM) Package VI. The project is expected to be completed in two years or 24 months, according to HG Infra.

HG Infra’s net profit rose over 11 percent to ₹190 crore in the March quarter (Q4FY24) from ₹170.9 crore in the same quarter a year ago (Q4FY23). Revenue increased by 11.3 percent to ₹1,708.2 crore, from ₹1,535.4 crore during the same period. Earnings before interest, tax, depreciation, and amortisation (EBITDA) jumped 12.1 percent to ₹332.6 crore versus ₹296.8 crore in the previous year. The EBITDA margin came in at 19.5 percent in Q4FY24, compared to 19.3 percent in Q4FY23.

HG Infra Engineering is engaged in engineering, procurement, and construction (EPC) business, including the maintenance of roads, bridges, flyovers, and other infrastructure contract works.