Tuesday, February 27, 2018
H.G Infra Engineering Ltd.-IPO
About the Company : H.G Infra Engineering Ltd.is
pre-dominantly engaged in the engineering, procurement and construction (EPC)
services of road projects. Currently, more than 90% of the business is coming
from Maharashtra and Rajasthan. The company's order book has grown at a
phenomenal pace of 114% compounded annual growth rate (CAGR) from FY15 to FY17.
With a track record of delivering projects on, the company has received bonuses
for early execution of projects.Financials : Its revenue and bottomline has grown
at a CAGR of 34.3% and 37% respectively from FY13 to FY17. The return ratio's
too have been far better as compared to the peers. The return on equity (RoE)
and return on capital employed (RoCE) has averaged 19.6% and 40% respectively
in the preceding four years.The debt equity ratio at 0.9 in FY17 is in
check and is set to go down as the company will pre-pay the loans from the IPO
proceeds. This can lower the finance cost too in future.
Sun shine in Road Sector: It is expected that investment in road projects to double to Rs 10.70 trillion over next five years & the share of EPC projects to widen.The Government's focus on improving infrastructure in India, the roads and highways infrastructure sector has high potential for growth and the company's experience and track record in the construction business provides them with a competitive advantage in pursuing future opportunities.
Considering the Financials Strength of H.G Infra Engineering Ltd.’s Balance Sheet ie. ROE, ROCE & Debt to Equity Ration, we may Subscribe the IPO.
Sun shine in Road Sector: It is expected that investment in road projects to double to Rs 10.70 trillion over next five years & the share of EPC projects to widen.The Government's focus on improving infrastructure in India, the roads and highways infrastructure sector has high potential for growth and the company's experience and track record in the construction business provides them with a competitive advantage in pursuing future opportunities.
Considering the Financials Strength of H.G Infra Engineering Ltd.’s Balance Sheet ie. ROE, ROCE & Debt to Equity Ration, we may Subscribe the IPO.
Financials : https://pkamc-my.sharepoint.com/:x:/g/personal/niftynext_myoffice365_site/Ef23LXlx7q9OjnemqHkBgusBZhg1DhJ3Qvh3ob08F_yKOg?e=Kp2Vns
Nifty Next : Nifty Future Trading Range on Tuesday 27.02.2018
Nifty-F closes
at ₹ 10600.50
with a Gain of +0.9% on 26.02.2018 with formation of a Green
Candle. We are expecting that Nifty-Future will trade with Flattish note within the Range of
10601-10641. We have Nifty Mid-Term
Support/ Resistance at 9500/11700 for the next 6 months.
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