Buy HG Infra Engineering Ltd For Target Rs.444 - Yes Securities
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Result Highlights
* The Company has reported net sales of Rs. 10.3bn on standalone basis, a growth of 65.0% yoy and 40.0% qoq (our est. Rs.7.9bn). The net sales for FY21 stood at Rs. 25.3bn up by 15.1% yoy.
* EBITDA for the quarter came in at Rs. 1.7bn up by 64.2% yoy and 41.0% qoq. The company reported a strong EBITDA margin of 16.2% during Q4 FY21 (16.3% in Q4 FY20).
* Adjusted PAT almost doubled yoy to Rs. 977 mn.
* During the quarter, the company won projects totaling ~Rs. 25bn and order book now stands at Rs. 70.4bn (2.8x FY21 Revenue).
* The total cash and equivalent at the end of FY21 stood at Rs. 2.6bn, up from Rs. 1.1bn as at the end of FY20. The gross standalone debt stood at Rs. 2.9bn which is largely working capital debt.
* The debtor days as at 31st March 2021 stood at 79 days whereas inventory days at 42 days. The creditor days were at 88 days.
* Further the company has announced that collection from customers have been normal during the lockdown period enabling the company to meet all its liabilities (including employee payables) in a timely manner and without availing any moratorium as announced by RBI. The company also announced that it doesn’t foresee any material impact on revenue and operating cash flow due to the pandemic.
* The Company has declared a final dividend of Rs. 0.8/share
Our view:
The company has significantly enhanced its execution momentum in Q4 FY21 which has led to this robust performance in FY21. The new order addition in Q4 FY21 has further increased the revenue visibility for the company. Hence, we have increased our estimates for FY22 and FY23 to factor in the same. Currently, the stock is trading at 7.4x FY23E EPS. We maintain our BUY rating on the stock for revised target price of Rs.444 (based on SOTP valuation). We assign target multiple of 8x to Construction business and value BOT business at book value.
To Read Complete Report & Disclaimer Click Here
Please refer disclaimer at https://yesinvest.in/privacy_policy_disclaimers
SEBI Registration number is INZ000185632
Above views are of the author and not of the website kindly read disclaimer
