H.G. Infra Engineering’s margin remains elevated; Prospects remains bright! Buy for target price of ₹1914 (51.4% upside): SMIFS

HG Infra is well-positioned to achieve 16.1% revenue CAGR over FY24-27E, to be propelled by its strong existing order book position and expectations of better inflows. Further, margins are likely to remain elevated with an expectation of 15.5% in FY27. Consequently, EBITDA is projected to improve at 14.7% CAGR. Furthermore, we anticipate 14.6% (adj.) PAT CAGR over FY24-27E with controlled depreciation and finance costs. At CMP, the stock (excl. investments) is trading at 7.5x FY27E P/E. On SOTP methodology, our target price arrives at Rs1,914/share. BUY