H.G. Infra Engineering Ltd (HGINFRA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

PSP Projects

PNC Infratech

Interarch Build.

Bondada Engineer

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Patel Engineerin

KNR Construct.

H.G. Infra Engg.

Ashoka Buildcon

Oriana Power Ltd

TVS Infra. Trust

Why is H.G. Infra Engineering Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.97 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.97 times

Poor long term growth as Net Sales has grown by an annual rate of 8.45% and Operating profit at 11.58% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(9M) At Rs 383.60 cr has Grown at 40.35%
NET SALES(Q) At Rs 1,100.59 cr has Fallen at -25.75%
PAT(Latest six months) At Rs 148.48 cr has Grown at -35.38%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.56% over the previous quarter and collectively hold 11.49% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Below par performance in long term as well as near term

Along with generating -56.59% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is H.G. Infra Engg. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

H.G. Infra Engg.

-56.64%

-1.53

37.14%

Sensex

-10.5%

-0.78

13.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.45%

EBIT Growth (5y)

11.58%

EBIT to Interest (avg)

3.82

Debt to EBITDA (avg)

2.68

Net Debt to Equity (avg)

1.46

Sales to Capital Employed (avg)

1.13

Tax Ratio

42.34%

Dividend Payout Ratio

2.58%

Pledged Shares

Institutional Holding

11.49%

ROCE (avg)

20.18%

ROE (avg)

19.83%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.88

EV to EBIT

8.71

EV to EBITDA

7.25

EV to Capital Employed

0.95

EV to Sales

1.58

PEG Ratio

Dividend Yield

0.45%

ROCE (Latest)

10.50%

ROE (Latest)

8.95%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bearish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING PROFIT TO NET SALES(Q)

Highest at 27.60%

PBT LESS OI(Q)

Highest at Rs 140.90 cr.

PAT(Q)

Highest at Rs 101.64 cr.

-14What is not working for the Company

INTEREST(9M)

At Rs 383.60 cr has Grown at 40.35%

NET SALES(Q)

At Rs 1,100.59 cr has Fallen at -25.75%

PAT(Latest six months)

At Rs 148.48 cr has Grown at -35.38%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.64 times

EPS(Q)

Lowest at Rs -6.93

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Here's what is working for H.G. Infra Engg.

Operating Profit Margin - Quarterly

Highest at 27.60%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 140.90 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 101.64 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for H.G. Infra Engg.

Net Sales - Quarterly

At Rs 1,100.59 cr has Fallen at -25.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Interest - Nine Monthly

At Rs 383.60 cr has Grown at 40.35%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -6.93

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 6.64 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio