OPEN APP
Home / Markets / Stock Markets /  This multibagger infra stock surges today. ICICI Securities has 'Buy' tag post Q3 results
Listen to this article

HG Infra reported decent set of numbers during Q3FY22. The company's standalone revenue improved 24.7% year-on-year (YoY) to 915.6 crore, backed by its strong executable order book position, pick-up in execution, and receipt of appointed date in most of its projects, highlighted ICICI Securities in a note. Shares of HG Infra over 3% on the BSE in Monday's deals.

HG Infra’s share price has grown 2.4x over the past four years (from around 267 in March 2018 to 630 levels in February 2022. The brokerage has maintained Buy rating on the multibagger stock, that has rallied over 127% in a year's period. It target price of 885 per share with target period of twelve months.

HG is likely to be one of the major recipients of thriving roads, railways and water supply segments, the note stated. Healthy order inflows to aid its order book position. Strong order book position, receipt of appointed date in most of its projects, and execution pick-up to translate into 19.9% topline CAGR over FY21-24E. 

Further, current order mix with built-in raw material price variation clauses in most of its contracts provides margin sustainability at around 15.5-16%. Double-digit return ratios and lean balance sheet position, which could act as key triggers for future price performance, as per ICICI Securities.

HG Infra Engineering is a Jaipur (Rajasthan) based infrastructure company having primary focus on roads and allied sectors. Additionally, the company is actively looking to diversify itself by targeting railways, airport, and water infra segments.

Besides HG Infra, ICICI Securities likes PNC Infratech in infra space on its play on strong execution and lean balance sheet. It has a Buy rating on the stock with a target price of 425 per share.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout