H.G. Infra Engineering Ltd. (HGINFRA) AI Stock Analysis

• Market Cap: ₹45.31B
• Dividend Yield: 0.25%
• Average Volume (3M): 9.64K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.84
• Revenue Growth: -8.92%
• EPS Growth: -22.83%
• Country: IN
• Employees: 4,848
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 10.31
• Shares Outstanding: 65,171,110
• 10 Day Avg. Volume: 7,417
• 30 Day Avg. Volume: 9,642
• PEG Ratio: -2.29
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 1.41
• P/FCF Ratio: -2.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹930.00 ▲(24.92% Upside)

The overall stock score of 57 reflects a combination of strong financial performance but significant technical challenges. The company's robust revenue growth and profitability are offset by negative cash flows and high leverage, necessitating careful management. The technical indicators suggest a bearish trend, which could pose short-term risks. Valuation is reasonable, but the low dividend yield limits income potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective execution of projects, supporting long-term business sustainability.

Profit Margins

Sustained profit margins reflect efficient cost management and operational effectiveness, enhancing long-term profitability.

Asset Growth

Asset growth suggests reinvestment in the business, supporting future expansion and competitive positioning in the infrastructure sector.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.

Negative Cash Flow

Negative cash flow raises concerns about liquidity and cash conversion efficiency, which could limit the company's operational flexibility.

Margin Compression

Margin compression suggests rising costs or competitive pressures, which may affect future profitability if not addressed.

H.G. Infra Engineering Ltd. Business Overview & Revenue Model

Company Description

H.G. Infra Engineering Limited engages in the road construction, and engineering, procurement, and construction business in India. It constructs and maintains highways, bridges, flyovers, and other infrastructure contract works. The company executes civil construction projects comprising extension and grading of runways, railways, and land development. In addition, it undertakes water pipeline projects. The company was incorporated in 2003 and is based in Jaipur, India.

How the Company Makes Money

H.G. Infra Engineering Ltd. generates revenue primarily through the execution of contracts for infrastructure projects, which include government and private sector construction jobs. The company's revenue model is centered on a mix of fixed-price contracts and cost-plus contracts, allowing for predictable cash flows upon successful project completion. Key revenue streams include payments from project milestones, mobilization advances, and final payments upon project handover. Additionally, HGINFRA may enter into joint ventures or partnerships with other construction firms or governmental bodies, which can expand its project pipeline and enhance its market reach, thereby contributing to its earnings. The company also benefits from various government initiatives aimed at infrastructure development, which can lead to increased contract opportunities.

H.G. Infra Engineering Ltd. Financial Statement Overview

Summary

H.G. Infra Engineering Ltd. demonstrates strong revenue growth and profitability, though it faces challenges with cash flow management and high leverage. The company appears to be investing heavily in its future, but the negative cash flows and high debt levels suggest a need for careful financial management to sustain growth while maintaining liquidity and reducing financial risk.

Income Statement

H.G. Infra Engineering Ltd. shows strong revenue growth over the past years, with a notable increase from 2020 to 2024. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. However, slight margin compression in recent years suggests increasing competitive pressures or cost challenges.

Balance Sheet

The balance sheet reflects substantial growth in total assets and stockholders' equity, suggesting strong reinvestment in the business. However, the debt-to-equity ratio is relatively high, indicating significant leverage which could pose a risk if not managed carefully. The equity ratio has remained stable, showing a balanced capital structure.

Cash Flow

The company exhibits negative free cash flow in recent years due to high capital expenditures, which may be indicative of investment in growth. Operating cash flow has been consistently negative, raising concerns about cash conversion efficiency. The free cash flow to net income ratio is negative, highlighting potential liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	50.10B	50.56B	53.78B	44.66B	36.63B	25.68B
Gross Profit	14.45B	14.68B	15.24B	7.38B	7.92B	5.85B
EBITDA	10.14B	10.64B	10.58B	9.12B	7.16B	4.89B
Net Income	4.42B	5.05B	5.39B	4.93B	3.80B	2.37B
Balance Sheet
Total Assets	0.00	87.73B	54.34B	49.27B	32.92B	26.84B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.97B	2.04B	2.67B	566.37M	1.46B
Total Debt	0.00	41.70B	15.13B	19.10B	11.84B	7.68B
Total Liabilities	-29.50B	58.23B	29.79B	30.05B	18.56B	16.21B
Stockholders Equity	29.50B	29.50B	24.55B	19.22B	14.36B	10.63B
Cash Flow
Free Cash Flow	0.00	-24.36B	-5.44B	-4.78B	-3.89B	-271.70M
Operating Cash Flow	0.00	-8.78B	-3.11B	-1.39B	-3.22B	705.52M
Investing Cash Flow	0.00	-14.61B	169.55M	-3.78B	-656.42M	-1.03B
Financing Cash Flow	0.00	23.10B	3.19B	5.62B	2.93B	1.52B

H.G. Infra Engineering Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 744.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HGINFRA, the sentiment is Negative. The current price of 744.45 is below the 20-day moving average (MA) of 746.68, below the 50-day MA of 809.17, and below the 200-day MA of 980.38, indicating a bearish trend. The MACD of -29.43 indicates Positive momentum. The RSI at 26.27 is Positive, neither overbought nor oversold. The STOCH value of 10.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HGINFRA.

H.G. Infra Engineering Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNRCON	74 Outperform	₹39.92B	6.48	―	0.16%	-42.73%	-44.36%
AHLUCONT	68 Neutral	₹60.04B	22.86	―	0.06%	5.56%	-22.59%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MANINFRA	61 Neutral	₹46.97B	16.25	―	1.03%	-21.85%	-1.63%
DBL	60 Neutral	₹76.85B	10.55	―	0.21%	-13.57%	40.24%
HGINFRA	57 Neutral	₹45.31B	10.97	―	0.25%	-8.92%	-22.83%
PNCINFRA	57 Neutral	₹61.76B	7.68	―	0.23%	-30.54%	-35.13%

H.G. Infra Engineering Ltd. Corporate Events

H.G. Infra Engineering to Divest 100% Stake in Khammam Devarapalle SPV to Neo Infra Fund

H.G. Infra Engineering Limited has executed a Securities Purchase Agreement with Neo Infra Income Opportunities Fund to sell 100% of its shareholding in its wholly owned subsidiary, H.G. Khammam Devarapalle PKG-2 Private Limited. The transaction, previously outlined in an earlier disclosure in August 2025, represents a strategic divestment of a project SPV, potentially allowing the company to unlock capital tied up in the subsidiary and rebalance its project portfolio, while bringing in a financial investor focused on infrastructure income opportunities.

H.G. Infra Sells Two Raipur–Visakhapatnam SPVs to Neo Infra Fund

H.G. Infra Engineering Ltd. has executed Securities Purchase Agreements with Neo Infra Income Opportunities Fund to divest its entire shareholding in two wholly owned subsidiaries, H.G. Raipur Visakhapatnam AP-1 Private Limited and H.G. Raipur Visakhapatnam OD-5 Private Limited. The move, earlier flagged in an August 13, 2025 disclosure, effectively transfers 100% ownership of these special purpose vehicles to the infrastructure-focused fund, signaling a strategic monetisation of project assets that could streamline H.G. Infra’s balance sheet and free capital for new opportunities in its core road and highway portfolio.

H.G. Infra Secures Major Contract for Thane Metro Rail Project

H.G. Infra Engineering Ltd. announced the receipt of a Letter of Acceptance from Maharashtra Metro Rail Corporation Limited for the Thane Metro Rail Project. This joint venture with Kalpataru Projects International Limited involves the design and construction of a 20.527 km elevated metro viaduct, marking a significant step in the company’s expansion in metro rail infrastructure, potentially enhancing its market presence and stakeholder value.

H.G. Infra Engineering Appoints New Chief of Staff

H.G. Infra Engineering Limited, a company involved in infrastructure development, has announced a change in its senior management. Col Satyajeet Ghoshal has been appointed as the Chief of Staff, effective December 10, 2025. With over 31 years of experience in the Indian Army and corporate leadership, including a tenure with the Adani Group, Ghoshal is recognized for his operational excellence and strategic agility. His appointment is expected to enhance the company’s leadership capabilities and drive sustainable business growth.