HG Infra gains on winning Rs 466-crore RVNL project

HG Infra Engineering shares gained almost 4 percent in the morning trade on February 23 after the company emerged as the lowest bidder for a Rs 466-crore Rail Vikas Nigam Limited (RVNL) project.

The project involves the construction of foundations substructure and superstructure, along with river training/protection work, earthwork, and allied works in connection with Bhanupali-BilaspurBeri New Railway Line in the Bilaspur district of Himachal Pradesh.

HG Infra Engineering bid Rs 466.11 crorr for the project, which is expected to be completed in 30 months.

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According to brokerage firm ICICIdirect, HG Infra had guided for order inflows of around Rs 9,000-10,000 crore during the current financial year, out of which it has already secured orders worth Rs 5,700 crore in the first three quarters of FY 23.

The latest project win is expected to further boost the company’s revenue visibility and ICICIdirect sees this as a positive sign for its growth prospects.

In the third quarter of FY 23, HG Infra’s bottom line rose 25.3 percent year-on-year to Rs 111.4 crore, while the topline gained 22.6 percent to Rs 1,131.2 crore from the same period of the previous year.

At 11.06 am, HG Infra Engineering was trading at Rs 737.50 on the National Stock Exchange, up 2.57 percent from the previous close. The stock also tested an intraday high of Rs 749.55.