Multibagger infra stock may rise another 65%, cross Rs 1,700; here's why 

Multibagger stock: Shares of HG Infra Engineering Ltd gained 3% in an otherwise weak market today after two brokerages turned positive on the multibagger infrastructure stock. HG Infra shares gained 2.92% to Rs 1080.60 in the current session on BSE. Market cap of HG Infra stood at Rs 7,009 crore on BSE. Total 7610 shares of the firm changed hands amounting to a turnover of Rs 81.43 lakh.     

Axis Securities has assigned a price target of Rs 1155 and maintained its buy call on the stock. This implies an upside of 10% from the current market price. 

"The stock is currently trading at PE of 9x and 7x of its FY26E/FY27E earnings Traditionally focused on Roads and Highways, the company has successfully expanded into the Railways and Solar sectors, securing multiple orders in these segments. These now contribute 32% of the total order book, reducing dependence on a single sector. The company anticipates an order inflow of Rs 11,000 Cr in FY26, in which management expects Rs 6,000-7,000 Cr from Roads & Railways projects," said Axis Securities. 

Key risks to the brokerage's projections are lower order inflow, execution may hamper revenue growth and an increase in input cost may impact margins.

Another brokerage JM Financial assigned a price target of Rs 1740, an upside of 65% to the previous close of Rs 1049.90 on BSE. 

It has maintained buy stance on the stock. 

"We like HG for its robust execution track record, strong growth and lean balance sheet. Monetization proceeds from 4 HAM assets have strengthened the balance sheet. We expect 14% EPS CAGR over FY25-27E. HG trades at an attractive valuation of 12x/10x FY26/27E EPS. We value HG’s EPC business at 14x Mar-27 EPS and HAM/Solar/BESS assets at Rs 287/share (0.7-1x P/B) to arrive at SOTP-based revised price target of Rs 1,740," said JM Financial. 

"HG expects 17–18% YoY revenue growth and 15–16% EBITDA margins for FY26E, with order inflows of Rs 11,000 crore. HG has strong highways bid pipeline of Rs 600 bn. Additionally, it has submitted bids for projects worth Rs 15000 crore where results are awaited," added the brokerage. 

The stock has gained 107% in three years and risen 425% in five years. 

The stock has a beta of 1.28, indicating high volatility in a year. It is trading in neither in the overbought nor in the oversold territory with a RSI of 45.5. HG Infra shares are trading higher than the 5 day, 10 day, 20 day but lower than the 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

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