Public infrastructure is crucial for economic growth, improving connectivity, trade, and quality of life. In India, infrastructure investment has surged, with contributions from both the public and private sectors driving this growth. In 2023-24, total infrastructure spending reached Rs 10 lakh crore.
India boasts the world’s second-largest road network, with National Highways spanning 1,46,145 km. Capital expenditure, including private investments, increased 5.7 times, from Rs 53,000 crore in 2013-14 to Rs 3.01 lakh crore in 2023-24, the highest ever.
Price Action
The shares of H.G. Infra Engineering Ltd, with a total market capitalization of Rs 6,712.95 Crores, were trading at Rs 1,030 per share on Tuesday, which was 0.9 percent lower than the previous closing price of Rs 1,038.9. The shares generated strong returns of 86 percent in the past three years and a stellar 376 percent returns in the past five years. The shares of H.G Infra Engineering Ltd are currently trading at a discount of 45 percent from its 52-week high of Rs 1,879.90 per share.
Total Order Book
As of December 2024, the company’s total order book stands at Rs 15,080 Crores, which is twice its market capitalization of Rs 7,149.92 Crores. The company received orders from the Government, PSUs, and Private entities like NHAI, Adani, RVNL, MoRTH, DMRC, etc.
The Roads and Highways segment has a total order value of Rs 11,234.7 Crores, the Railways and Metro segment has Rs 2,289 Crores, and Solar projects have Rs 1,556.3 Crores of orders, totalling Rs 15,080 Crores.
Order Book Composition
The company’s order book is predominantly government-driven, with 94 percent of orders coming from the public sector and 6 percent from the private sector. Of these, 33 percent are from Hybrid Annuity Model (HAM) projects, while 67 percent are from Engineering, Procurement, and Construction (EPC) projects. In terms of project types, 75 percent are focused on Roads and Highways, 15 percent on Railways, and 10 percent on Solar Projects.
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Recent Developments
In February 2025, H.G. Infra Engineering Ltd, along with D.E.C. Infrastructure and Projects Pvt Ltd, received the letter of acceptance from the Rail Land Development Authority for the redevelopment of New Delhi Railway Station and construction of associated Infrastructure on EPC mode with an estimated project cost of Rs 2,469 Crores.
In January 2025, the company received a Letter of Intent from Gujarat Urja Vikas Nigam Ltd for 250 MW/500 MWH out of the project for setting up 500 MW/1000 MWh Standalone Battery Energy Storage Systems in Gujarat.
Future Outlook
The company has targeted an order inflow of Rs 11,000 crores to Rs 12,000 crores for FY25 and has secured new orders of Rs 8,200 Crores in projects from infrastructure and renewables, which includes the recent project for the Redevelopment of New Delhi Railway Station in February 2025.
The management is anticipating revenue growth of 17 to 18 percent in the upcoming quarters while maintaining an EBITDA margin of 15 to 16 percent. The company is also actively pursuing opportunities in new segments while concentrating on operational efficiencies, prudent capital allocation, and strategic project selection to sustain margins and enhance shareholder value.
The company is confident in its traction in the renewable energy sector and preparedness to execute larger projects. It is anticipating to enter into other segments like transmission and water.
Finacials
The company reported a decline of 7.3 percent YoY in Revenue from Operations from Rs 1,365 Crores in Q3FY24 to Rs 1,265 Crores in Q3FY25. Their Net Profits grew 27 percent YoY from Rs 102 Crores to Rs 115 Crores over the same period.
About H.G Infra Engineering
The company specializes in the construction, development, design, and management of infrastructure projects. It is involved in EPC, road, bridge, flyover maintenance, and other infrastructure contracts, with a focus on HAM and civil construction projects. Its clients include both government and private sectors, such as NHAI, MoRTH, Indian Railways, DMRC, and various state governments.
Written By Adhvaitha Nayani
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