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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

HG Infra Engineering Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:11 pm

Market Cap 8,337 Cr.
Current Price 1,279
High / Low1,880/805
Stock P/E15.9
Book Value 413
Dividend Yield0.12 %
ROCE24.1 %
ROE24.1 %
Face Value 10.0
PEG Ratio0.62

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for HG Infra Engineering Ltd

Competitors of HG Infra Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of HG Infra Engineering Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7511,0599417859581,0651,1067961,1851,5351,3519551,365
Expenses6198647666307738729076359471,2381,0707341,136
Operating Profit131196176155185192199161238297281220228
OPM %18%18%19%20%19%18%18%20%20%19%21%23%17%
Other Income34312344476322
Interest24312628303434334047525957
Depreciation22232021222220242626313537
Profit before tax89147133107136139148108177231203129156
Tax %24%24%24%30%26%25%26%24%26%26%26%26%35%
Net Profit68111101751011041098213117115096102
EPS in Rs10.4017.0515.5011.4315.4315.9516.7912.5720.0826.2323.0814.7515.66

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7411,0561,3932,0142,2172,6103,7514,6225,206
Expenses6639321,1851,7101,8642,1253,0403,7274,179
Operating Profit781242083053534847118951,026
OPM %11%12%15%15%16%19%19%19%20%
Other Income2351414661938
Interest161940496094118154215
Depreciation1826547576848596129
Profit before tax4683119194231312515665719
Tax %35%36%29%34%28%24%26%26%
Net Profit305384127167237380493519
EPS in Rs16.7529.6412.9319.5425.5736.3158.3175.6879.72
Dividend Payout %0%0%4%3%0%2%2%2%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)76.67%58.49%51.19%31.50%41.92%60.34%29.74%
Change in YoY Net Profit Growth (%)0.00%-18.18%-7.30%-19.69%10.42%18.42%-30.60%

HG Infra Engineering Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2016-2017 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:22%
3 Years:27%
TTM:9%
Compounded Profit Growth
10 Years:%
5 Years:33%
3 Years:30%
TTM:-4%
Stock Price CAGR
10 Years:%
5 Years:39%
3 Years:26%
1 Year:48%
Return on Equity
10 Years:%
5 Years:27%
3 Years:27%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:37 pm

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital18186565656565656565
Reserves1051584765987619971,3711,8572,3902,625
Borrowings1232044083805207681,1841,9101,5132,447
Other Liabilities1531925355298698506601,0741,4351,523
Total Liabilities3985721,4841,5732,2162,6803,2804,9065,4036,660
Fixed Assets116204412462483484459635742747
CWIP519011227214312
Investments0003000101011
Other Assets2773671,0641,1081,7222,1952,8194,1894,6375,590
Total Assets3985721,4841,5732,2162,6803,2804,9065,4036,660

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +64-8663671-322-139-311
Cash from Investing Activity +-114-4469-85-103-66-37817
Cash from Financing Activity +62443-7871152293562319
Net Cash Flow13-11-321120-954426

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-45.00-80.00-200.00-75.00-167.00-284.00710.00894.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days466311311111381625846
Inventory Days5644714352374048
Days Payable667818722212888123135
Cash Conversion Cycle3629-3111-66511-26-41
Working Capital Days502851661131018596102
ROCE %33%24%24%24%26%28%25%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.53%74.53%74.53%74.53%74.53%74.53%74.53%74.53%74.53%74.53%74.53%74.53%
FIIs2.16%1.26%0.74%0.58%0.62%0.57%1.34%1.59%1.67%1.56%1.68%2.04%
DIIs14.65%13.94%14.07%14.16%13.86%14.04%14.01%13.14%13.05%12.45%12.50%12.13%
Public8.66%10.27%10.66%10.73%10.99%10.87%10.12%10.73%10.74%11.47%11.30%11.30%
No. of Shareholders36,48456,36363,36568,72770,95061,72561,42875,48477,39078,47585,5961,04,692

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund2,835,5900.68253.47290,0142024-11-23877.74%
HSBC Small Cap Fund - Regular Plan1,624,6871.26145.23290,0142024-11-23460.21%
HSBC Midcap Fund619,4090.6955.37290,0142024-11-23113.58%
HSBC Infrastructure Fund500,0002.4744.7290,0142024-11-2372.41%
Bandhan Infrastructure Fund290,0143.425.92290,0142024-11-230%
DSP Tiger Fund241,7030.8821.61290,0142024-11-23-16.66%
Kotak Infrastructure & Economic Reform Fund - Regular Plan197,5001.5517.65290,0142024-11-23-31.9%
UTI Infrastructure Fund191,7011.0417.14290,0142024-11-23-33.9%
Aditya Birla Sun Life Infrastructure Fund189,1572.2516.91290,0142024-11-23-34.78%
Mahindra Manulife Multi Cap Fund170,7710.6915.27290,0142024-11-23-41.12%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)82.6475.6858.3136.3125.57
Diluted EPS (Rs.)82.6475.6858.3136.3125.57
Cash EPS (Rs.)104.2590.2971.3749.2737.61
Book Value[Excl.RevalReserv]/Share (Rs.)376.71294.90220.34163.04126.78
Book Value[Incl.RevalReserv]/Share (Rs.)376.71294.90220.34163.04126.78
Revenue From Operations / Share (Rs.)825.29709.21575.63399.30340.19
PBDIT / Share (Rs.)165.68140.18110.0875.2856.65
PBIT / Share (Rs.)144.02125.4097.0362.3245.04
PBT / Share (Rs.)113.48101.8078.9747.8735.87
Net Profit / Share (Rs.)82.5975.5058.3136.3126.00
NP After MI And SOA / Share (Rs.)82.6475.6858.3136.3125.57
PBDIT Margin (%)20.0719.7619.1218.8516.65
PBIT Margin (%)17.4517.6816.8515.6013.24
PBT Margin (%)13.7514.3513.7111.9810.54
Net Profit Margin (%)10.0010.6410.139.097.64
NP After MI And SOA Margin (%)10.0110.6710.139.097.51
Return on Networth / Equity (%)21.9325.6626.4622.2720.16
Return on Capital Employeed (%)25.5523.5625.9923.7526.18
Return On Assets (%)9.9110.0111.548.817.51
Long Term Debt / Equity (X)0.440.770.670.520.25
Total Debt / Equity (X)0.610.990.820.640.48
Asset Turnover Ratio (%)1.041.121.431.151.21
Current Ratio (X)1.741.732.091.791.45
Quick Ratio (X)1.571.561.881.621.35
Inventory Turnover Ratio (X)8.5110.2310.198.678.06
Dividend Payout Ratio (NP) (%)1.511.321.370.001.95
Dividend Payout Ratio (CP) (%)1.191.101.120.001.34
Earning Retention Ratio (%)98.4998.6898.630.0098.05
Cash Earning Retention Ratio (%)98.8198.9098.880.0098.66
Interest Coverage Ratio (X)4.985.946.105.216.18
Interest Coverage Ratio (Post Tax) (X)3.404.204.233.513.84
Enterprise Value (Cr.)7225.506728.434646.162365.151405.19
EV / Net Operating Revenue (X)1.341.461.240.900.63
EV / EBITDA (X)6.697.366.484.823.81
MarketCap / Net Operating Revenue (X)1.101.100.960.740.50
Retention Ratios (%)98.4898.6798.620.0098.04
Price / BV (X)2.412.652.531.821.35
Price / Net Operating Revenue (X)1.101.100.960.740.50
EarningsYield0.090.090.100.120.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of HG Infra Engineering Ltd as of November 24, 2024 is: 1,584.47

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, HG Infra Engineering Ltd is Undervalued by 23.88% compared to the current share price 1,279.00

Intrinsic Value of HG Infra Engineering Ltd as of November 24, 2024 is: 1,989.08

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, HG Infra Engineering Ltd is Undervalued by 55.52% compared to the current share price 1,279.00

Last 5 Year EPS CAGR: 25.54%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 23.11%, which is a positive sign.
  2. The company has higher reserves (1,133.80 cr) compared to borrowings (945.70 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (84.56 cr) and profit (320.44 cr) over the years.
  1. The stock has a high average Working Capital Days of 76.89, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 6.22, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in HG Infra Engineering Ltd:
    1. Net Profit Margin: 10%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 25.55% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 21.93% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.4
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.57
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 15.9 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.61
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

HG Infra Engineering Ltd. is a Public Limited Listed company incorporated on 21/01/2003 and has its registered office in the State of Rajasthan, India. Company’s Corporate Identification Number(CIN) is L45201RJ2003PLC018049 and registration number is 018049. Currently Company is involved in the business activities of Construction and maintenance of motorways, streets, roads, other vehicular and pedestrian ways, highways, bridges, tunnels and subways. Company’s Total Operating Revenue is Rs. 3615.20 Cr. and Equity Capital is Rs. 65.17 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Construction, Contracting & EngineeringNo. 14, Panchwati Colony, Ratanada, Jodhpur Rajasthan 342001cs@hginfra.com
http://www.hginfra.com
Management
NamePosition Held
Mr. Harendra SinghChairman & Managing Director
Mr. Dinesh Kumar GoyalExecutive Director
Mr. Vijendra SinghExecutive Director
Mr. Ashok Kumar ThakurIndependent Director
Mrs. Pooja Hemant GoyalIndependent Director
Ms. Monica WidhaniIndependent Director
Mr. Manjit SinghIndependent Director
Ms. Sharada SunderIndependent Director

FAQ

What is the latest intrinsic value of HG Infra Engineering Ltd?

The latest intrinsic value of HG Infra Engineering Ltd as on 24 November 2024 is ₹1584.47, which is 23.88% higher than the current market price of ₹1,279.00.

What is the Market Cap of HG Infra Engineering Ltd?

The Market Cap of HG Infra Engineering Ltd is 8,337 Cr..

What is the current Stock Price of HG Infra Engineering Ltd as on 24 November 2024?

The current stock price of HG Infra Engineering Ltd as on 24 November 2024 is 1,279.

What is the High / Low of HG Infra Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of HG Infra Engineering Ltd stocks is 1,880/805.

What is the Stock P/E of HG Infra Engineering Ltd?

The Stock P/E of HG Infra Engineering Ltd is 15.9.

What is the Book Value of HG Infra Engineering Ltd?

The Book Value of HG Infra Engineering Ltd is 413.

What is the Dividend Yield of HG Infra Engineering Ltd?

The Dividend Yield of HG Infra Engineering Ltd is 0.12 %.

What is the ROCE of HG Infra Engineering Ltd?

The ROCE of HG Infra Engineering Ltd is 24.1 %.

What is the ROE of HG Infra Engineering Ltd?

The ROE of HG Infra Engineering Ltd is 24.1 %.

What is the Face Value of HG Infra Engineering Ltd?

The Face Value of HG Infra Engineering Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in HG Infra Engineering Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE