Check Before You Invest : Highway Infrastructure Ltd

Q: Which industry/sub-sector does Highway Infrastructure Ltd belong to?

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

Q: Is Highway Infrastructure Ltd a good quality company?

Highway Infrastructure Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Highway Infrastructure Ltd undervalued or overvalued?

Highway Infrastructure Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 19.37, Historic Median: -. Price to Book, Current: 1.76, Historic Median: -. Price to Sales, Current: 0.91, Historic Median: -. EV to EBITDA, Current: 11.12, Historic Median: -

Q: Is Highway Infrastructure Ltd a good buy now?

Highway Infrastructure Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Highway Infrastructure Ltd?

Highway Infrastructure Ltd revenue growth is 4.3% for FY-2025, which is below its 5-year CAGR of 33.18%, indicating slower growth.

Q: Gross Profit margin of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.4% for FY-2025, which is in line with its 5-year median of 6.6%, indicating stable margins.

Q: Operating Profit Margin of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.97% for FY-2025, which is below its 5-year median of 6.8% indicating decreasing margins.

Q: Net Profit Margin of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Net Profit Margin is 4.7% for FY-2025, is in line with its 5-year median of 4.7%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 6.4, Historic Median: 6.6. Operating Profit Margin (%), Current: 4.97, Historic Median: 6.8. Net Profit Margin (%), Current: 4.7, Historic Median: 4.7

Q: Return on Asset of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Return on Asset is 9.85%, which is in line with its 5-year historical median of 9.85%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Return on capital employed is 19.83% for FY-2025, which is in line with its 5-year historical median of 19.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Highway Infrastructure Ltd

Snapshot

Q.1 Which industry/sub-sector does Highway Infrastructure Ltd belong to?

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

Q.2 Is Highway Infrastructure Ltd a good quality company?

Highway Infrastructure Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Highway Infrastructure Ltd undervalued or overvalued?

Highway Infrastructure Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	19.37	-
Price to Book	1.76	-
Price to Sales	0.91	-
EV to EBITDA	11.12	-

Q.4 Is Highway Infrastructure Ltd a good buy now?

Highway Infrastructure Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Highway Infrastructure Ltd?

Highway Infrastructure Ltd revenue growth is 4.3% for FY-2025, which is below its 5-year CAGR of 33.18%, indicating slower growth.

Q.2 Gross Profit margin of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.4% for FY-2025, which is in line with its 5-year median of 6.6%, indicating stable margins.

Q.3 Operating Profit Margin of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.97% for FY-2025, which is below its 5-year median of 6.8% indicating decreasing margins.

Q.4 Net Profit Margin of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Net Profit Margin is 4.7% for FY-2025, is in line with its 5-year median of 4.7%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	6.4	6.6
Operating Profit Margin (%)	4.97	6.8
Net Profit Margin (%)	4.7	4.7

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Return on Asset is 9.85%, which is in line with its 5-year historical median of 9.85%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Return on capital employed is 19.83% for FY-2025, which is in line with its 5-year historical median of 19.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Return on equity is 19.09% for FY-2025, which is in line with its 5-year historical median of 19.09%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Cash conversion cycle is 64 days, in line with its 5-year historical median of 64 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	2.1	2.1
ROE (%)	19.09	19.09
ROCE (%)	19.83	19.83
Cash Conversion Cycle	64 days	64 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Debt-to-Equity ratio is 0.54, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Highway Infrastructure Ltd?

Highway Infrastructure Ltd Debt to cash flow from operations is -5.69, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Highway Infrastructure Ltd?

Q.1 Promoter shareholding and pledge status of Highway Infrastructure Ltd?

Promoters hold 70.04% of the Highway Infrastructure Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Highway Infrastructure Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Highway Infrastructure Ltd vs industry peers?

Highway Infrastructure Ltd revenue CAGR is 33.18%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	4.3	0
Gross Profit Growth (%)	-	16.3
Operating Profit Growth (%)	-22.2	13.9
Net Profit Growth (%)	5.3	20.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	2.1	0.62
ROE (%)	19.09	6.32
ROCE (%)	19.83	10.58
Cash Conversion Cycle (days)	63.83	51

Valuation & price assessment

Q.1 Stock return of Highway Infrastructure Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.2 Valuation ratios of Highway Infrastructure Ltd vs historical?

The current P/E ratio of 19.37 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.

Q.3 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	19.37	-	21.52
Price to Book	1.76	-	1.74
Price to Sales	0.91	-	1.51
EV to EBITDA	11.12	-	11.49

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Check Before You Invest : Highway Infrastructure Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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