This Infrastructure Stock Has Potential To Gain By 28%, Highway Projects Ongoing: ICICI Direct

ICICI Direct, an established brokerage firm recommended investors buying the stocks of HG Infra Engineering Ltd. The Current Market Price (CMP) of HG Infra Engineering Ltd. is Rs. 572. ICICI Direct has estimated a Target Price for the stock at Rs. 735, translating to a 28.49% return in 1 year. This is a small-cap infrastructure company with a market capitalization of Rs. 3,737 crore. The company's 52 week high share price stood at Rs. 830, and 52 week low share price stood at Rs. 357.55.

On April 21, this year, the share price went up to Rs. 664.30. So, from that level, the stock's price has fallen by around 24%. So, it can be a good time to buy the stock. For investors, ICICI Direct mentioned, "Play on strong execution, lean balance sheet, and healthy order book."

Stock Outlook
Current Market Price (CMP)	Rs. 572
Target Price	Rs. 735
Potential 1 year return	28.49%
52 week high share price	Rs. 830.00
52 week low share price	Rs. 357.55

The company's net sales stood at Rs. 1,064.69 crore in Q4 FY22, gaining by 0.79% from Rs. 1,056.29 crore in the same quarter in FY 21. Its quarterly net profit stood at Rs. 103.95 crore in Q4 FY22, falling by 6.44% YoY, from Rs. 111.11 crore. Additionally, EBITDA stood at Rs. 195.06 crore in the same quarter falling by 2.46% YoY from Rs. 199.97 crore. However, the company's earnings per share (EPS) has fallen to Rs. 15.95, from Rs. 17.05.

At present, the company is working on a construction project for the proposed Rewari Bypass with a design length of 14.4 Km, as a Feeder Route in the state of Haryana in Hybrid Annuity Mode. The project's cost is Rs. 432.00 crore (Construction /EPC Cost). This project is commissioned under the National Highways Authority of India (NHAI).

H.G. Infra Engineering Limited (HGIEL) is an infrastructure company promoted by Shri Hodal Singh, a stalwart with 40 years of experience in the construction sector. They made their debut with a primary focus on highways, roads, and bridges. Considering the infrastructural growth in India, and the government's focus on road and highway developments, this company stock can be a good buy.