Mehabe score: 7 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
H.G Infra Engg is engaged in the business of Engineering, Procurement and Construction (EPC), Maintenance of roads, bridges, flyovers and other infrastructure contract works.Site:HGINFRAMain Symbol:HGINFRA
Stock trades at 563.0, above its 50dma 472.03. It also trades above its 200dma 344.49. The stock remains bullish on techicals
The 52 week high is at 630.00 and the 52week low is at 150.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
–
Competition
– The industry trades at a mean P/E of 37.3x. Macrotech Devel. trades at the industry’s max P/E of 489.29x. HGINFRA trades at a P/E of 11.6x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 7.0. HGINFRA has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 21.4%. The max 1- month return was given by National Standar: a return of 153.77 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 941.0 cr compared to Rs 312.0 cr for period ended Jun 2020, a rise of 201.6%
Operating Profits reported at Rs 176.0 cr for period ended Jun 2021 vis-vis 61.0 for period ended Jun 2020 .
Operating Margins contracted -84.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 15.5 compared to Rs 17.05 for previous quarter ended Mar 2021 and Rs 3.06 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3232.0 cr for period ended TTM vis-vis sales of Rs 2602.0 cr for the period ended Mar 2021, a healthy growth of 19.5%. The 3 year sales cagr stood at 17.1%.
Net Profit reported at Rs 318.0 cr for period ended TTM vis-vis sales of Rs 237.0 cr for the period ended Mar 2021, rising 25.5%.
Company recorded a healthy Net Profit CAGR of 35.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 71.0 cr for period ended Mar 2021 vis-vis Rs 36.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 25.0% compared to 23.0% over the last 3 Years. – The stock has given a return of 193% on a 1 Year basis vis-vis a return of 33% over the last 3 Years. – The compounded sales growth on a TTM bassis is 62% vis-vis a compounded sales growth of 23% over the last 3 Years. – The compounded profit growth on a TTM basis is 114% vis-vis a compounded profit growth of 41% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.47% vis-vis 0.12% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 8.51% vis-vis 7.16% for Mar 2021
Conclusion
– is expected to give good quarter –
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 472.03 and is trading at 563.0, thus bullish price action wise.
