H.G. Infra Engineering Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

H.G. Infra Engineering Ltd trades at ₹539, in a downtrend and 76 weeks into that stage. That is −20.3% against its own 200-day average. It sits at 14% of a 52-week range of ₹461 to ₹1,005. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (8 weeks and counting).

Today the stock is in a downtrend — week 76 of stage 4, confirmed. At ₹539 it trades −20.3% versus its 200-day average and sits at 14% of its 52-week range (₹461–₹1,005).

Against the market, two honest reads. Cumulative: over the last 8.4 years the stock moved +101% while the NIFTY 500 moved +156% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (8 weeks and counting; last ahead the week of 2026-06-19) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

H.G. Infra Engineering Ltd trades at 13.3× P/E, at the pricey end of its own range (79th percentile). Its long-run median P/E is 11.2×, measured across 8.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 13.3× is at the pricey end of its own range (79th percentile), against a long-run median of 11.2× measured over 8.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved −34.6% against a −47.6% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +0.4%/yr price move, ~+2.1%/yr came from earnings growth and ~−1.7 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Deteriorating Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

H.G. Infra Engineering Ltd reads as deteriorating on its fundamental arc. Deteriorating — profit and EPS growth are shrinking (profit growth −34.8% latest against +38.4% at its 12-quarter best), ROCE slipping at 14.4%. The read is built from 12 quarters across 4 curves, on full evidence.

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

4-Factor Sector Score

38.1/100 — rank 14 of 17 in Infra - Construction & Contracting · 90% evidence confidence

H.G. Infra Engineering Ltd scores 38.1 out of 100 against the 17 companies it is compared with in Infra - Construction & Contracting, ranking 14. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 14.7 + 12.2 + 6.7 + 4.5 = 38.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

H.G. Infra Engineering Ltd reported ₹1,427 Cr of revenue in the Mar 26 quarter, +4.8% year on year. That is the 3rd straight quarter of year-on-year growth. Over 10 years it has compounded at 21.6% a year. The last full year, FY26, came in at ₹5,235 Cr. The last four reported quarters add to ₹5,234 Cr.

FY26 revenue came in at ₹5,235 Cr (+3.5% on the year), capping 10 years at 21.6% compound. The latest quarter (Mar 26) printed ₹1,427 Cr, +4.8% year on year — the 3rd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +3.6% growth against the decade's 21.6% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +3.5% over the last 4 quarters against −1.4%/yr over the last 8 — accelerating; TTM profit −34.8% vs −21.7%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

H.G. Infra Engineering Ltd's operating margin is 17.0% in the Mar 26 quarter, −1.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 11.0% to 21.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 17.0%, −1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 11.0%–21.0%.

🚨 Why the margin moved: operating margin went −1.0 pp year on year while gross margin went −0.5 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

H.G. Infra Engineering Ltd earned ₹85.0 Cr of net profit in the Mar 26 quarter, −42.2% year on year. Full-year FY26 profit was ₹330 Cr. The 10-year compound rate is 27.1%. That is 6.0% of the quarter's revenue. The same quarter a year earlier earned ₹147 Cr.

Mar 26 profit was ₹85.0 Cr, −42.2% year on year. On the full year, FY26 printed ₹330 Cr (−34.7%), and the 10-year compound rate is 27.1%.

🚨 Why profit moved: revenue contributed +4.8% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit −33.9% vs revenue +3.6%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −68% of H.G. Infra Engineering Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹250 Cr of operating cash against ₹330 Cr of profit. After ₹971 Cr of capital spending, ₹−721 Cr was left as free cash.

FY26: operating cash of ₹250 Cr against reported profit of ₹330 Cr, leaving free cash of ₹−721 Cr after ₹971 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −68% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −68%: the cash cycle tightened 176 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 6.1× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

H.G. Infra Engineering Ltd's cash conversion cycle runs −171 days in FY26, down from 5 days in FY21. Capital spending ran ₹2,783 Cr over the last 3 years. At FY26 sales of ₹5,235 Cr each day of that cycle holds about ₹14.3 Cr, so roughly ₹−2,453 Cr sits inside the business at any moment.

FY26: debtors at 55 days, inventory at 73 days — roughly 2.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −171 days, tighter than FY21's 5.

The full loop: cash goes out to suppliers and production on day 0; stock waits 73 days to sell; customers pay about 55 days after that; and suppliers themselves are paid at 299 days — netting out to the −171-day cycle.

In money terms: at FY26 sales of ₹5,235 Cr, each day of the cycle holds about ₹14.3 Cr — so the −171-day loop keeps roughly ₹−2,453 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹2,783 Cr over the last 3 fiscal years against ₹453 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹740 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

H.G. Infra Engineering Ltd earns a ROCE of 11% in FY26. Return on invested capital clears the cost of that capital by −4.6 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 6.3% net margin on 0.48× asset turns.

FY26 ROCE is 11%.

🚨 Why the return is what it is — the wiring (FY26): 6.3% net margin × 0.48× asset turns × 3.32× balance-sheet leverage ≈ 10.0% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 7.4% − 12.0% = a −4.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

H.G. Infra Engineering Ltd carries total debt of ₹5,029 Cr against shareholder equity of ₹3,281 Cr as of Mar 26, a debt-to-equity of 1.53. On the annual view that ratio went from 0.82 in FY22 to 1.53 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹5,029 Cr against shareholder equity of ₹3,281 Cr — a debt-to-equity of 1.53. On the annual view, debt-to-equity went from 0.82 (FY22) to 1.53 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 2.8 points of H.G. Infra Engineering Ltd over 8 quarters, the biggest move on the register. That takes promoters to 71.8% of the company. Domestic institutions moved −2.0 points over the same window, to 10.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −2.8 points over 8 quarters to 71.8%; Domestic institutions: −2.0 points over 8 quarters to 10.1%; Foreign institutions: −0.7 points over 8 quarters to 1.4%.

🚨 Why the register moved: promoters drove it (−2.8 points), alongside domestic institutions (−2.0 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

H.G. Infra Engineering Ltd: the Z-score reads 1.66. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits inside the distress zone. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

🚨 Why it matters: a Z-score of 1.66 is inside the distress zone — the balance sheet is a real risk, not a detail.

The safety line in one sentence: the Z-score reads 1.66.

Frequently asked questions