Check Before You Invest : H.G. Infra Engineering Ltd

Snapshot

Q.1 Which industry/sub-sector does H.G. Infra Engineering Ltd belong to?

H.G. Infra Engineering Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is H.G. Infra Engineering Ltd a good quality company?

H.G. Infra Engineering Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is H.G. Infra Engineering Ltd undervalued or overvalued?

H.G. Infra Engineering Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is H.G. Infra Engineering Ltd a good buy now?

H.G. Infra Engineering Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of H.G. Infra Engineering Ltd?

H.G. Infra Engineering Ltd revenue growth is 18.2% for FY-2025, which is below its 5-year CAGR of 22.47%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of H.G. Infra Engineering Ltd?

H.G. Infra Engineering Ltd Return on capital employed is 26.16% for FY-2025, which is below its 5-year historical median of 31.68%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of H.G. Infra Engineering Ltd?

H.G. Infra Engineering Ltd Return on Asset is 11.27%, which is below its 5-year historical median of 13.76%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of H.G. Infra Engineering Ltd?

H.G. Infra Engineering Ltd Return on equity is 22.18% for FY-2025, which is below its 5-year historical median of 26.63%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of H.G. Infra Engineering Ltd?

H.G. Infra Engineering Ltd Cash conversion cycle is 19 days, below its 5-year historical median of 25 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.18	1.3
ROE	22.18	26.63
ROCE	26.16	31.68
Cash Conversion Cycle	19 days	25 days

Q.6 Gross Profit margin of H.G. Infra Engineering Ltd?

H.G. Infra Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.1% for FY-2025, which is in line with its 5-year median of 14.7%, indicating stable margins.

Q.7 Operating Profit Margin of H.G. Infra Engineering Ltd?

H.G. Infra Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.53% for FY-2025, which is in line with its 5-year median of 16.08% indicating stable margins.

Q.8 Net Profit Margin of H.G. Infra Engineering Ltd?

H.G. Infra Engineering Ltd Net Profit Margin is 9.54% for FY-2025, is in line with with its 5-year median of 9.54%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	14.1	14.7
Operating Profit Margin	15.53	16.08
Net Profit Margin	9.54	9.54

Q.9 Debt to Equity ratio of H.G. Infra Engineering Ltd?

H.G. Infra Engineering Ltd Debt-to-Equity ratio is 0.37, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of H.G. Infra Engineering Ltd?

H.G. Infra Engineering Ltd Debt to cash flow from operations is 8.93, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of H.G. Infra Engineering Ltd?

Promoters hold 71.78% of the H.G. Infra Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of H.G. Infra Engineering Ltd vs industry peers?

H.G. Infra Engineering Ltd revenue CAGR is 22.47%, compared to the industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	18.2	9.5
Gross Profit Growth	12.7	14.9
Operating Profit Growth	14.4	11.1
Net Profit Growth	5.9	18.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.18	0.68
ROE	22.18	8.34
ROCE	26.16	11.34
Cash Conversion Cycle (days)	19.11	57

Valuation & price assessment

Q.1 Stock return of H.G. Infra Engineering Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 16.54% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	16.5%	-13.9%	-47%

Q.3 Valuation ratios of H.G. Infra Engineering Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	7.73	12.59	21.62
Price to Book	1.23	2.91	1.75
Price to Sales	0.62	1.18	1.50
EV to EBITDA	5.86	7.76	11.53

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