After the company received the Letter of Award (LoA) for a project worth Rs 2,297 crore from the National Highway Authority of India (NHAI), the share price of H G Infra Engineering surged 15% to Rs 819.55 in intraday trading on Tuesday. The shares of the construction and engineering company exceeded the previous high of 784.30 rupees set on October 18, 2021.
Its trading price rose 12% to 795.60 rupees, while the S&P BSE Sensex index fell 0.09%. The first project is the development of the six-lane Kaliagura-Baunsaguar section of the NH-130-CD highway (packaging-OD-5) under the Raipur-Visakhapatnam Economic Corridor. The bidding cost of the company is Rs 1,338.27 crore. The second project is the development of the six-lane Baunsaguar-Baraja section of the NH-130-CD highway (including OD-6) under the Raipur-Vishakhapatnam Economic Corridor.
The bidding cost of the company is 958.98 crore. Both projects have adopted a Hybrid Annuity Mode (HAM) in Odisha with a completion period of 730 days. H G Infra Engineering is an infrastructure construction, development and management company. The main business includes the provision of engineering-procurement-and-construction (EPC) services with a fixed amount of turnkey, and the undertaking of civil construction and related infrastructure projects. The company has strong operations in Rajasthan, Haryana, Uttar Pradesh, Maharashtra, Telangana and Andhra Pradesh.
In the past six months, due to strong revenue and order growth, the stock has risen 205%. In contrast, the Standard & Poor’s BSE Sensex index rose by 26% during the same period. HG Infra stated in its 2020-21 financial year (FY21) annual report that the company recently witnessed the government’s nationwide increase in infrastructure construction, with the goal of improving roads, connectivity and urbanization in this new region. ten years.
With consistent high rewards and construction activities, the company sees the good potential of a strong pipeline in the future.
News Source : Business Standard