Shares of HG Infra Engineering surged 3.67% to ₹1,379.65 during intraday trade today, on Monday, following its selection as a qualified bidder for a major battery energy storage system project in Gujarat. The contract, awarded by Gujarat Urja Vikas Nigam Ltd, involves the construction of a 250 MW/500 MWh standalone battery system and forms part of a larger 500 MW/1000 MWh initiative under global tariff-based bidding.
This development has solidified the company’s position in infrastructure, making it an appealing choice for those looking to invest in stocks.
Contract details and project timeline
The battery storage system, aimed at bolstering Gujarat’s renewable energy capabilities, will be completed within 18 months. HG Infra’s successful qualification for such a high-profile project highlights its technical and financial credibility. It demonstrates why it is a key player for investors seeking opportunities to invest in stocks tied to sustainable energy and infrastructure.
Company performance and stock market response
HG Infra has seen a steady rise in its stock performance, delivering a 59% year-to-date return, significantly outpacing the BSE Sensex’s 10% rise in the same period. Over the past year, the company’s shares have climbed 56%, compared to the Sensex’s 18% gain.
At 10:45 AM on Monday, shares were trading 1.59% higher at ₹1,351.90, despite a broader market dip with the Sensex down 0.16%. This sustained growth underlines why it could be a strong candidate for those planning to invest in stocks in the infrastructure sector.
Financial overview and valuation metrics
In Q2FY25, HG Infra’s revenue stood at ₹902.4 crore, down 5.5% year-on-year, while its profit after tax dropped 16% to ₹80.7 crore. However, the company maintained strong operating efficiency, with its EBITDA margin improving by 130 basis points to 24.3%.
With a market capitalisation of ₹8,798.10 crore, a price-to-earnings (P/E) ratio of 14.82, and earnings per share (EPS) of ₹91.01, the company offers a balanced mix of growth potential and valuation attractiveness. For investors looking to invest in stocks, these metrics highlight the firm’s resilience and profitability.
Why consider investing in HG Infra?
HG Infra’s foray into renewable energy with the Gujarat battery storage project reflects its strategic diversification and commitment to future-ready initiatives. Coupled with its consistent market outperformance and robust project portfolio, it presents an enticing opportunity for those aiming to invest in stocks with exposure to infrastructure and renewable sectors.
As the company continues to secure transformative projects, its shares may attract sustained investor interest, making it a key consideration for portfolio diversification.
For android only