HG Infra Engineering witnessed a significant increase in its share price, reaching Rs 1,542 per share on the BSE after securing a letter of award from the Ministry of Road Transport & Highways for a substantial road project. The company's share price has seen a remarkable appreciation of 68.09% over the last six months and a substantial rise of 80.21% year-to-date, as per data from the BSE.
The road project awarded to HG Infra Engineering is valued at Rs 781.11 crore and encompasses the upgrade of an existing 6-lane road with an elevated corridor in Gujarat, spanning from km 0/00 to km 10/170 of NH 47 (Narol Junction to Sarkhej Junction). The project will be executed on a hybrid annuity mode, and the company is expected to complete it within 2.5 years or 29 months as stated in their official statement.
In its core operations, HG Infra Engineering focuses on the engineering, procurement, and construction (EPC) business, which includes tasks like maintaining roads, bridges, flyovers, and other infrastructure construction works. During the first quarter of the financial year 2024-25 (Q1FY25), the company saw a 13% annual growth in revenue, reaching Rs 1,528 crore compared to Rs 1,351 crore in the corresponding quarter of the previous year (Q1FY24). Additionally, the company's net profit also saw a rise of over 8% year-on-year, climbing to Rs 162.6 crore in Q1FY25 from Rs 150.4 crore in Q1FY24.
As of early morning trading, HG Infra Engineering's share price was 4.75% higher at Rs 1530.85 per share, while the BSE Sensex was trading 0.22% higher at 81,741 levels. The company currently holds a total market capitalization of Rs 9,976.72 crore, with its shares trading at a price to earnings multiple of 16.81 times and an earnings per share of Rs 86.95.