HG Infra stock gains 4% on emerging lowest bidder for project of Rs 781 cr

HG Infra stock in focus: Shares of construction engineering company HG Infra Engineering rose as much as 4.05 per cent to hit an intraday high of Rs 1,647.15 per share. 

The uptick in HG Infra share price came after the company announced that it has emerged as the lowest bidder (L-1) for a project worth Rs 781.11 crore. 

The estimated cost of the project by MORTH was Rs 883.24 crore. However, the bid cost by HG Infra was Rs 781.11 crore.

In an exchange filing, HG Infra said, “We wish to inform you that HG Infra Engineering Limited (the Company or HGINFRA) has been declared as L-l bidder by the Ministry of Road Transport and Highways (MoRTH).”

 

Under the terms of order, the company will be responsible for up-gradation of existing 6 lane road including elevated corridor as per site requirements from km 0/00 to km 10/170 of NH 47 (Narol Junction to Sarkhej Junction) in the Gujarat on Hybrid Annuity Mode (HAM). 

The company will be required to complete the project in 2.5 years or 29 months, the company said in a statement.

HG Infra Engineering is engaged in engineering, procurement and construction (EPC) business including maintenance of roads, bridges, flyovers and other infrastructure contract works. 

Q1 financial performance

HG Infra’s revenue or topline grew 13 per cent annually to Rs 1,528 crore in Q1FY25, from Rs 1,351 crore in the same quarter a year ago (Q1FY24).

The company’s net profit jumped over 8 per cent Y-o-Y to Rs 162.6 crore in the June quarter of FY25, from Rs 150.4 crore in the same quarter last year (Q1FY24).

Last month, HG Infra announced that it has emerged as the lowest bidder (L-1) for a project from the Ministry of Road Transport and Highways (MORTH). The estimated cost of the project by MORTH was Rs 898.5 crore. However, the bid cost by HG Infra was Rs 763.11 crore.

The market capitalisation of the company is Rs 10,566.52 crore, according to Bombay Stock Exchange (BSE). The company falls under the SmallCap category.

At 10:01 AM, the stocks of the company were trading 2.43 per cent higher at Rs 1,621.35. In comparison, the BSE Sensex was trading 0.16 per cent lower at 80,672.18 levels.