Since the start of the year, shares of HG Infra Engineering have gone up by around 46%. Analysts at HDFC Securities and IDBI Capital see the stock going further taking into account its performance in the June quarter and the robust order book.

The HG Infra Engineering Analysts: Vishal Periwal for IDBI Capital maintained the ‘buy’ rating on the stock with a target price of ₹1,259. The target indicated an around 32% upside from the stock’s last closing price of ₹951.65.

Parikshit D Kandpal-led analyst team at HDFC Securities also maintained the ‘buy’ rating for the stock raising the price target to ₹1,201 from ₹1,159.

The HG Infra Engineering Thesis: Analysts at IDBI Capital said that the company’s net profits came in line with its estimates. However, the company’s standalone revenue at ₹1,271.3 crore for the June quarter missed estimates due to Monsoons.

HDFC Securities, on the hand, said that the constriction engineering company missed its estimates on all fronts. As per the analysts, the company had a muted start to the new financial year.

IDBI Capital analysts added that the company’s order inflow in the quarter was muted. The company also slashed order inflow estimates from ₹800-₹900 crore to ₹700-₹800 crore in FY24 (April 2023-March 2024).

However, HDFC Securities highlighted that the company’s order book is well-diversified at the client level, with government/private orders contributing toward 70%/30%. The order book stands at ₹1,167 crore.

Price Action: HG Infra’s share price was down 0.69% to trade at ₹945.10 in the early hours of trading on Thursday.

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