Shares of H G Infra Engineering surged 15 per cent to Rs 819.55 on the BSE in Tuesday’s intraday trade after the company received Letter of Award (LoA) from National Highways Authority of India (NHAI) for the projects worth of Rs 2,297 crore.
The stock of construction & engineering company surpassed its previous high of Rs 784.30 recorded on October 18, 2021. At 12:46 pm; it was trading 12 per cent higher at Rs 795.60, as compared to 0.09 per cent fall in the S&P BSE Sensex.
The first project is for the development of six lanes Kaliagura-Baunsaguar section of NH- 130-CD road under Raipur- Visakhapatnam Economics Corridor (Package — OD-5). The company put a bid cost of Rs 1,338.27 crore. The second project is for the development of six lanes Baunsaguar-Baraja section of NH- 130-CD road under Raipur- Visakhapatnam Economics Corridor (Package — OD-6). The company put a bid cost of Rs 958.98 crore. Both the projects are on Hybrid Annuity Mode (HAM) in the state of Odisha with a completion period of 730 days.
H G Infra Engineering is an infrastructure construction, development and management company. The main business includes providing engineering-procurement-and-construction (EPC) services on a fixed-sum turnkey basis and undertaking civil construction and related infrastructure projects. The company has a strong presence in the states of Rajasthan, Haryana, Uttar Pradesh, Maharashtra, Telangana and Andhra Pradesh.
In past six months, the stock has zoomed 205 per cent on strong growth in revenue and order book. In comparison, the S&P BSE Sensex was up 26 per cent during the same period.
HG Infra in the financial year 2020-21 (FY21) annual report said that the company has witnessed in the recent term an increasing push by the Government on infrastructure development across the nation with the objective of improving roadways, connectivity, and urbanization in this new decade. With consistently high awarding and construction activity, the company sees good potential with a strong pipeline ahead.
