Multibagger Stock: HG Infra Engineering gained over 160% in less than 2 years, climbed 727% in 4 years; should you buy?
HG Infra Engineering, an infrastructure company, have experienced a consistent upward trajectory in recent years. The company, which is engaged in Engineering, Procurement, and Construction (EPC) services, has seen its shares gain 163% in less than two years and an astounding 727% in just four years. In April, the shares recorded their largest monthly gain in three years, surging by 30%, and have continued their upward trend this month with another 14% increase so far.
During Tuesday's trading session, the stock breached the ₹1,400 mark for the first time, reaching an all-time high of ₹1,417.95 per share. Also Read: HAL share price hits lifetime high ahead of Q4 results 2024. Do you own? In the last quarter of the previous fiscal year, the company reported healthy numbers, with revenue growing by 11.2% year-on-year (YoY) to ₹1,635 crore.
The net profit for the quarter stood at ₹160 crore, compared to ₹148 crore in Q3FY24. For the entire fiscal year (FY24), the company's revenue from operations increased by 15.9% YoY to ₹5,121 crore, while the net profit surged to ₹545 crore from ₹421 crore, reflecting a growth of 29.5%. Also Read: Paytm shares: Emkay Global initiates with ‘Reduce’ call, expects 13% downside The management has guided 15-20% revenue growth and 15-16% EBITDA margins for FY25.
The anticipated revenue growth will primarily stem from existing under-construction projects. Regarding order inflows, the company expects to receive ₹11,000–12,000 crore in FY25, with an expected increase in momentum following the elections due to the robust NHAI pipeline. As of FY24, the order book stands at ₹12,434 crore, representing a 2.4x TTM book-to-bill ratio.
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