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IDBI Capital Report
HG Infra Engineering Ltd. Q3 FY24 operational result (revenue, Ebitda) came in line to our and consensus estimate. Revenue increased by +19% YoY and Ebitda margin was stable at ~15.9% versus 16.7% YoY.
Order win was muted and HG Infra is still hopeful to get inflow of Rs 50-60 billion in FY24E (received Rs 8 billion so far). Weak inflow has led to fall in the order book at Rs 96 billion versus Rs 111 billion YoY. But order book still provides revenue visibility at two times FY24E revenue.
We maintain 'Buy' rating on the stock with revised target price at Rs 1236, earlier target price was Rs 1169, as we have roll forward to FY26E versus FY25E earlier.
Stock catalyst remains order win, for this HG Infra has bided for orders Rs 160 billion and is venturing into new sectors like solar renewable sector, water supply, tunnelling for inflow.
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