Civil construction company HG Infra Engineering Limited has bagged a major order for a road project in Gujarat worth Rs 781 crore. Amid the news, shares of HG Infra rallied on Tuesday L&T said in a notification to the stock market that the contract has been awarded to L&T's transport infrastructure unit. After this, the shares were also rising by around 1 percent. The stock had closed at Rs 3,572 yesterday and was trading around Rs 3,605 around 1 pm.
Engineering and construction group Larsen & Toubro (L&T) has bagged a major contract to develop integrated infrastructure in Maharashtra. L&T said in a notification to the stock market that the contract has been awarded to L&T's transport infrastructure unit. After this, the shares were also rising by around 1 percent. The stock had closed at Rs 3,572 yesterday and was trading around Rs 3,605 around 1 pm. Apart from this, the target price on this stock has also been increased by the brokerage house.
The company informed in the filing
The company did not disclose the financial statement of the contract. However, it calls contracts between Rs 2,500 crore and Rs 5,000 crore as "large". According to the company notice, "L&T has been awarded the contract for integrated infrastructure development under the Navi Mumbai Airport Influence Notified Area (NIA) project in Maharashtra under City Planning Schemes Two to Seven.
What are the order details?
The estimated project cost of MoRTH is Rs 883.24 crore, of which HG Infra's bid is Rs 781.11 crore. The project will be implemented under Hybrid Annuity Mode (HAM) with a length of 10.63 km. The duration of this order is 2.5 years.
Expert opinion
Talking about shares of HG Infra Engineering, it closed marginally higher at Rs 1582.95 on Tuesday. The stock touched a level of Rs 1666.10 during the trade. Domestic brokerage Axis Securities has set a target price of Rs 1800 on the stock. Along with this it is advised to buy shares. The stock hit a 52-week high of Rs 1,880 on July 16. In December 2023, the share price was Rs 806. This is the stock's 52-week low.
Who owns how much stake in the company?
The promoters held 74.53 percent stake in the company as on June 30, 2024. Similarly, foreign investors i.e. FIIs have 2.04 percent stake, domestic investors i.e. DIIs have 12.12 percent stake.
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