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HG Infra stock rises 5% on securing ₹716 crore Maharashtra railway deal

Stocks
2 min Read Sep 13, 2024
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HG Infra Engineering saw its stock rise by 5 percent in early trade on September 13 after securing a major railway project from the Central Railway in Maharashtra, valued at ₹716 crores. This notable achievement highlights HG Infra's growing presence in infrastructure development and positions the company as a key player in India's transportation sector.

The contract involves constructing a new broad-gauge railway line between Dhule (Borvihir) and Nardana in Maharashtra. This project will span 49.45 km and will be carried out under the EPC or Engineering, Procurement, and Construction model. With a completion timeline of 30 months, this project is set to enhance regional rail connectivity in Maharashtra significantly.

Railway project boosts investor confidence

At 9:24 a.m. on the National Stock Exchange (NSE), HG Infra’s shares were trading at ₹1,557.70, reflecting the positive market sentiment following this announcement. The company’s stock has already grown by nearly 85 percent in 2024, making it an attractive option for those looking to buy shares online.

This railway contract is not the only major win for HG Infra recently. Earlier in the week, the company secured another significant contract worth ₹780 crore from the Ministry of Road Transport & Highways. This project, which involves upgrading a 10.63 km stretch of National Highway 47 (NH-47) in Gujarat, includes the construction of an elevated corridor between the Narol and Sarkhej junctions. Similar to the railway project, this contract is also being executed under the Hybrid Annuity Model (HAM) and is expected to be completed within 2.5 years.

Consistent project wins fuel growth

HG Infra’s steady stream of contract wins has bolstered its reputation in the construction sector. In August, the company was the lowest bidder for another major road upgrade project in Gujarat, which the Ministry of Road Transport and Highways had estimated at ₹883.24 crore. HG Infra’s successful bid came in at ₹781.11 crore, further solidifying its standing as a competitive contractor in the Indian infrastructure space.

These project wins not only showcase HG Infra's ability to handle large-scale infrastructure developments but also highlight its growing influence in India’s road and rail networks. For investors considering infrastructure stocks, HG Infra presents an appealing opportunity to buy shares online as it continues to deliver on major contracts and enhance its market presence.

Key takeaways

  • HG Infra stock rises: Shares of HG Infra Engineering jumped 5% following the announcement of a ₹716 crore railway project in Maharashtra.

  • Project details: The company will construct a new 49.45 km broad-gauge railway line between Dhule (Borvihir) and Nardana, with a 30-month timeline for completion.

  • Additional wins: HG Infra recently secured a ₹780 crore contract for upgrading National Highway 47 in Gujarat, marking its second major project win in a week.

  • Impressive stock performance: The company's shares have gained close to 85% since the start of 2024, making it a promising option for investors looking to buy shares online.