Highway Infra

Why is Highway Infrastructure Ltd falling/rising?

As of 01-Sep, Highway Infrastructure Ltd's stock price is declining, currently at 44.18, with a total drop of -2.23% over the last three days and a significant -53.96% return over the past year. The company's high Debt to EBITDA ratio and low Return on Capital Employed indicate financial concerns, contributing to a bearish market sentiment.

As of 01-Sep, Highway Infrastructure Ltd's stock price is falling, currently at 44.18, reflecting a change of -0.41 (-0.92%). The stock has been on a downward trend, having lost value for the last three consecutive days, resulting in a total decline of -2.23% during this period. This decline is further supported by the fact that the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent bearish sentiment.<BR><BR>Investor participation has also decreased, with delivery volume dropping by -37.99% compared to the 5-day average, suggesting reduced interest from traders. Additionally, the stock has underperformed significantly over the past year, with a staggering -53.96% return, compared to a -4.26% return for the broader market index, the Sensex. <BR><BR>The company's financial health is concerning, as it has a high Debt to EBITDA ratio of 3.72 times, indicating a low ability to service its debt. Furthermore, the Return on Capital Employed (ROCE) is low at 11.82%, reflecting poor management efficiency and profitability per unit of capital. These factors contribute to a negative outlook for the stock, leading to its current decline in price.

What does Highway Infra do?

Highway Infrastructure Ltd is a micro-cap construction company with recent net sales of 303 Cr and a net profit of 1 Cr as of June 2026. Key metrics include a P/E ratio of 12.00 and a market cap of INR 325 Cr.

Overview: Highway Infrastructure Ltd operates in the construction industry and is categorized as a micro-cap company.<BR><BR>History: The incorporation year is not provided, and there are no status changes mentioned. The latest quarter for which sales and profit are reported is June 2026.<BR><BR>Financial Snapshot: Most recent Net Sales: 303 Cr (Quarterly Results - Jun 2026). Most recent Net Profit: 1 Cr (Quarterly Results - Jun 2026). Market-cap value: INR 325 Cr (Micro Cap).<BR><BR>Key Metrics: P/E: 12.00, Industry P/E: 36, Dividend Yield: 0.00%, Debt Equity: 0.39, Return on Equity: 14.05%, Price to Book: 1.45.<BR><BR>Contact Details: Registrar Address: Not available. Phone: Not available. Email: Not available. Website: Not available.

Who are the peers of the Highway Infra?

Highway Infra's peers include Vishnu Prakash R, Markolines Pavem, Zodiac Energy, MBL Infrast, GVK Power Infra, Solarium Green, A2Z Infra Engg, Deepak Builders, and Mason Infratech, with varying management risks and growth rates. Markolines Pavem has the highest 1-year return at 3.25%, while Vishnu Prakash R has the lowest at -74.09%, with Highway Infra's return at -53.10%.

Peers: The peers of Highway Infra are Vishnu Prakash R, Markolines Pavem, Zodiac Energy, MBL Infrast, GVK Power Infra., Solarium Green, A2Z Infra Engg., Deepak Builders, and Mason Infratech.<BR><BR>Quality Snapshot: Excellent management risk is observed at Solarium Green and Mason Infratech, while Average management risk is found at Markolines Pavem and Deepak Builders, and the rest have Below Average management risk. Growth is Excellent at Zodiac Energy and Solarium Green, Good at Highway Infra and Mason Infratech, Average at Markolines Pavem and Deepak Builders, and the rest have Below Average growth. Capital Structure is Good at Solarium Green and Mason Infratech, Average at Markolines Pavem and Deepak Builders, and the rest have Below Average capital structure.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Markolines Pavem at 3.25%, while the peer with the lowest is Vishnu Prakash R at -74.09%. Highway Infra's 1-year return of -53.10% is better than Vishnu Prakash R's but worse than Markolines Pavem's. Additionally, several peers, including MBL Infrast, GVK Power Infra., Solarium Green, Deepak Builders, and A2Z Infra Engg., have negative six-month returns.

How big is Highway Infra?

As of 31st August, Highway Infrastructure Ltd has a market capitalization of 325.00 Cr, with recent Net Sales of 799.34 Cr and a Net Profit of 25.89 Cr.

As of 31st August, Highway Infrastructure Ltd has a market capitalization of 325.00 Cr, categorizing it as a Micro Cap company.<BR><BR>In the latest four quarters, the company reported Net Sales of 799.34 Cr and a Net Profit of 25.89 Cr.<BR><BR>The latest annual period for the balance sheet is March 2026, with Shareholder's Funds amounting to 228.25 Cr and Total Assets of 376.90 Cr.

Which are the latest news on Highway Infra?

Should I buy, sell or hold Highway Infrastructure Ltd?

When is the next results date for Highway Infrastructure Ltd?

The next results date for Highway Infrastructure Ltd is 11 August 2026.

The next results date for Highway Infrastructure Ltd is scheduled for 11 August 2026.

Are Highway Infrastructure Ltd latest results good or bad?

Highway Infrastructure Ltd's latest results show strong revenue growth with Q4 FY26 net sales up 107.90% year-on-year, but profitability is concerning, with net profit down 25.82% year-on-year and a significant drop in profit margins and return on equity. Investors should be cautious due to challenges in profitability and cash flow management.

Highway Infrastructure Ltd's latest results present a mixed picture. On one hand, the company achieved impressive revenue growth, with net sales for Q4 FY26 reaching ₹274.63 crores, which is a remarkable increase of 107.90% year-on-year and 116.48% quarter-on-quarter. This indicates strong demand and successful project execution.<BR><BR>However, the profitability metrics raise significant concerns. The consolidated net profit for the same quarter was ₹8.82 crores, reflecting a decline of 25.82% year-on-year, despite a sequential improvement of 37.60%. The profit after tax (PAT) margin has dropped sharply from 9.05% in Q4 FY25 to just 3.16% in Q4 FY26, suggesting that while the company is generating more revenue, it is struggling to convert that into profit effectively. <BR><BR>Additionally, the return on equity (ROE) has also decreased from an average of 17.43% to 9.36%, indicating a decline in capital efficiency. The company's cash flow dynamics are troubling, with operating cash flow turning negative, which could signal issues with working capital management.<BR><BR>Overall, while Highway Infrastructure Ltd has demonstrated strong sales growth, the significant erosion in margins and returns raises questions about the sustainability of this growth. Investors may want to approach the stock with caution, considering the current challenges in profitability and operational efficiency.

How has been the historical performance of Highway Infra?

Highway Infra's financial performance for the year ending March 2025 showed significant growth, with total operating income of 495.72 crore, a profit after tax of 22.40 crore, and a debt-free status. Total assets increased to 231.41 crore, while cash flow from operating activities was negative at -4.00 crore.

Answer:<BR>The historical performance of Highway Infra shows a significant growth trajectory in its financial metrics for the year ending March 2025.<BR><BR>Breakdown:<BR>In March 2025, Highway Infra reported total operating income of 495.72 crore, with a total expenditure of 464.39 crore, leading to an operating profit (PBDIT) of 40.09 crore. After accounting for interest and depreciation, the profit before tax stood at 30.25 crore, resulting in a profit after tax of 22.40 crore. The consolidated net profit for the period was 19.67 crore, translating to an earnings per share (EPS) of 3.4. The operating profit margin was recorded at 6.32%, while the profit after tax margin was 4.52%. On the balance sheet, total assets increased to 231.41 crore from 202.50 crore in the previous year, with shareholder's funds rising to 112.84 crore. The company also saw a notable increase in inventories, which reached 86.60 crore, and total current assets grew to 191.05 crore. However, total debt was reported at 0.00 crore, indicating a debt-free status. Cash flow from operating activities was negative at -4.00 crore, while cash flow from investing activities was positive at 12.00 crore, resulting in a net cash inflow of 1.00 crore by the end of the period.

Is Highway Infra overvalued or undervalued?

As of September 3, 2025, Highway Infra is considered very expensive and overvalued with a PE Ratio of 34.29, an EV to EBITDA of 34.52, and a Price to Book Value of 5.98, despite outperforming the Sensex recently, indicating a significant shift in its perceived value.

As of 3 September 2025, the valuation grade for Highway Infra has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 34.29, an EV to EBITDA of 34.52, and a Price to Book Value of 5.98, all of which suggest that the stock is trading at a premium compared to its earnings and book value.<BR><BR>In comparison to its peers, Highway Infra's PE Ratio is lower than DLF's 39.54 and Lodha Developers' 40.54, but it still reflects a high valuation relative to its earnings potential. Notably, the PEG Ratio is at 0.00, indicating no growth expectations factored into the price, which is concerning. Recent performance shows that Highway Infra has outperformed the Sensex over the past week with a return of 2.37% compared to the Sensex's -0.27%, but this short-term gain does not alter the overall valuation outlook.