Dolat Capital is bullish on H.G. Infra Engineering has recommended buy rating on the stock with a target price of Rs 332 in its research report dated February 04, 2019.
Dolat Capital's research report on H.G. Infra Engineering
We slightly upgrade our revenue estimates by 3.5%/ 2.2% for FY19E/ FY20E on the back of robust 9MFY19 performance. Our revenue growth of 23.2%/ 19.1% for FY20E/ FY21E is much lower than management guidance of 35-40%. We maintain our EBITDA margins for FY19E/ FY20E at 14.8% vs. management guidance of 15.5-16%. Accordingly, we upgrade PAT estimates by 2.9%/ 1.3% for FY19E/ FY20E. We estimate 30.0%/ 33.9% revenue/ PAT CAGR over FY18-21E.
Outlook
We rollover to FY21 and it looks attractive at 10.1x/ 8.0x/ 6.6x FY19E/ FY20E/ FY21E EPS, hence we maintain ‘BUY’ with a SOTP of `332 (10x FY21E EPS) and 1xFY21E P/B for HAM equity investments.
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