Key Events This Week
9 Feb: Intraday high of Rs.700 with 7.93% surge
13 Feb: Mixed quarterly results reveal highest-ever PBDIT but rising interest burden
13 Feb: Stock closes week at Rs.665.10, up 2.74% vs Sensex decline
9 February: Strong Intraday Rally Signals Short-Term Momentum
H.G. Infra Engineering Ltd began the week with a robust intraday rally on 9 February 2026, surging 7.79% to close at Rs.697.75, reaching an intraday high of Rs.700. This marked a significant rebound after two prior days of decline and outpaced the Sensex’s 1.04% gain on the day. The stock’s advance was supported by strong buying momentum and a move above its 5-day and 20-day moving averages, signalling a short-term positive trend reversal.
Despite this strength, the stock remained below its longer-term moving averages, indicating that while immediate momentum improved, longer-term technical resistance persisted. The broader market environment was positive, with the Sensex gaining 383 points, yet H.G. Infra’s outperformance of over 6 percentage points relative to the sector highlighted renewed investor interest in the stock.
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10–12 February: Profit Taking and Market Volatility Temper Gains
Following the strong start, the stock experienced some profit booking on 10 February, slipping 0.92% to Rs.691.35 amid lower volumes. The Sensex continued to rise modestly by 0.25%, indicating a more cautious market tone. On 11 February, H.G. Infra Engineering Ltd recovered slightly, gaining 0.88% to Rs.697.40, tracking a marginal Sensex increase of 0.13%.
However, on 12 February, the stock declined sharply by 3.60% to Rs.672.30, underperforming the Sensex which fell 0.56%. This drop reflected broader market weakness and emerging concerns about the company’s financial results and sector challenges. Trading volumes remained subdued during these sessions, suggesting a wait-and-watch approach by investors ahead of quarterly disclosures.
13 February: Mixed Quarterly Results Highlight Operational Gains but Rising Costs
H.G. Infra Engineering Ltd reported mixed financial results for the quarter ended December 2025 on 13 February. The company posted its highest-ever PBDIT of ₹308.79 crores, signalling improved operational efficiency and cost management. However, profit before tax (excluding other income) declined by 23.43% to ₹135.33 crores, while net profit after tax contracted 18.1% to ₹94.28 crores, weighed down by a record quarterly interest expense of ₹129.18 crores.
The financial trend score improved slightly from -25 to -18 over the past three months, indicating a modest easing of financial stress. The debtors turnover ratio reached a record 11.28 times, reflecting better receivables management. Conversely, the return on capital employed (ROCE) remained subdued at 9.88%, and the debt-to-equity ratio peaked at 1.84 times, underscoring elevated leverage concerns.
On the trading front, the stock closed at Rs.665.10, down 1.07% on the day but still up 2.74% for the week, outperforming the Sensex’s 0.54% decline. The company’s Mojo Score remains cautious at 38.0 with a Sell grade, reflecting ongoing challenges despite operational improvements.
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Weekly Price Performance: Stock vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.697.75 | +7.79% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.691.35 | -0.92% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.697.40 | +0.88% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.672.30 | -3.60% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.665.10 | -1.07% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: The stock’s 7.79% surge on 9 February demonstrated strong short-term momentum and buying interest, supported by technical indicators such as moving averages. The highest-ever quarterly PBDIT of ₹308.79 crores reflects operational improvements and better cost control. Improved debtor turnover ratio indicates enhanced working capital management.
Cautionary Signals: Despite operational gains, net profit contracted by 18.1% due to rising interest expenses, which hit a quarterly high of ₹129.18 crores. The company’s leverage remains elevated with a debt-to-equity ratio of 1.84 times, constraining financial flexibility. Return on capital employed remains low at 9.88%, signalling subdued capital efficiency. The Mojo Grade remains Sell, reflecting cautious market sentiment.
Market Context: The stock outperformed the Sensex by 3.28% over the week, highlighting relative resilience amid a broadly negative market environment. However, the stock’s longer-term performance remains challenged, with a 40.75% decline over the past year contrasting with the Sensex’s gains.
Conclusion
H.G. Infra Engineering Ltd’s week was characterised by a strong early rally followed by profit taking and mixed financial results. The highest-ever PBDIT and improved operational metrics offer some encouragement, but rising interest costs and subdued profitability temper optimism. The stock’s outperformance relative to the Sensex underscores its short-term resilience, yet elevated leverage and low returns on capital remain key concerns. Investors should monitor upcoming quarters closely to assess whether operational improvements can translate into sustained earnings growth and improved financial health.
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