HG Infra shares rose 5% after qualifying for a Gujarat battery storage project, signaling growth in clean energy and infrastructure.


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HG Infra Engineering Ltd. witnessed a 5% surge in its share price on April 22, 2025, climbing to ₹1,197 after the company was declared a qualified bidder for a significant battery energy storage project by Gujarat Urja Vikas Nigam Ltd. (GUVNL).

The project involves the installation of a Standalone Battery Energy Storage System (BESS) with a capacity of 300 MW/600 MWh under the Tariff-Based Global Competitive Bidding (Phase VI) framework, signaling HG Infra’s entry into the fast-growing clean energy infrastructure space.

Strong Market Performance and Analyst Confidence

This development comes amid a strong week for HG Infra's stock, which has rallied 12% over the last seven days, outperforming the 8% gain in the Nifty 50 index. Adding to the positive momentum, Axis Securities recently reiterated a “Buy” rating, setting a target price of ₹1,201 per share.

Solid Fundamentals and Order Pipeline

As of December 31, 2024, HG Infra boasted an order book of ₹15,080 crore, nearly three times its FY24 revenue. Of this, 94% comprises government-backed projects, providing robust revenue visibility for the next 2–3 years.

The company secured fresh orders worth ₹2,195 crore in Q4FY25, with future projections indicating that 35–40% of its order book will be driven by non-road infrastructure projects, including energy, water, and urban development.

Looking ahead, HG Infra aims to bag new contracts worth ₹10,000–12,000 crore in FY26, while analysts expect a CAGR of 15% in revenue, 12% in EBITDA, and 15% in PAT over FY25–FY27.

Disclaimer

This story is for informational purposes only and does not constitute investment advice. Readers are advised to consult with a certified financial advisor before making any investment decisions. Jobaaj Stories does not endorse any stock or security mentioned.

FAQ

HG Infra's shares surged 5% after the company was announced as a qualified bidder for a major battery storage project in Gujarat, under a competitive bidding process.

The project marks HG Infra's diversification into clean energy infrastructure, expanding its portfolio beyond traditional road projects.

With an order book of ₹15,080 crore, 94% of which is government-backed, the company has strong revenue visibility for the next few years.

Analysts expect strong growth, with a projected CAGR of 15% in revenue and PAT over the FY25–FY27 period, driven by diversification and robust order inflow.

Axis Securities has set a target price of ₹1,201 per share and issued a “Buy” recommendation.

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