Multibagger infra stock trading near 52-week low, price target cut on Q2 earnings; do you own?

Shares of HG Infra Engineering have received a price target downgrade from brokerage Anand Rathi post its Q2 earnings. The stock, which is trading near its 52 week low of Rs 875 reached on November 13, is now likely to reach a price target of Rs 1,142 in a year from the earlier Rs 1339. The brokerage values its core EPC business at 8 times Sep’27 EPS estimates.

The multibagger stock with gains of 338% in five years has lost 42% this year and fallen 28% in six months. In two years, the stock has gained 2%. 

On the other hand, Antique Stock Broking has termed HG Infra among its top picks. It has a price target of Rs 1,461 on the infra stock. The brokerage expects a 15% EBITDA margin in FY26 against 15% in FY25. 

In the current session, the infra stock was trading 0.79% lower at Rs 882 against the previous close of Rs 889 on BSE. Market cap of the firm stood at Rs 5,737 crore. 

The stock has a beta of 1.4, indicating high volatility in a year. It is trading in neither in the overbought nor in the oversold territory with a RSI of 38.9. HG Infra shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Anand Rathi commentng on the firm's prospects after the Q2 earnings said, "Debt soared to Rs 1630 crore, mainly due to advances to suppliers. Management expects execution to pick up in H2, as recently added orders enter execution with margin at historical level of 15-16%. Leverage is likely to normalise led by disbursement from solar SPVs. Proceeds from monetisation of five HAM in Q4 FY26 would strengthen its balane sheet."

In the second quarter of this fiscal, HG Infra Engineering reported a 35.4% year-on-year fall in net profit. Profit slipped to Rs 52.1 crore in Q2 compared to Rs 80.7 crore in the corresponding period last year.

Revenue from operations rose 0.2% to Rs 904.5 crore against Rs 902.4 crore in Q2FY25.

EBITDA fell 5.9% YoY to Rs 206.2 crore from Rs 219.1 crore, while margins contracted to 22.8% from 24.3%, reflecting cost pressures.

HG Infra Engg. is engaged in the business of engineering, procurement and construction (EPC), maintenance of roads, bridges, flyovers and other infrastructure contract works.