HG Infra Engineering Ltd.’s “best in class” operating and financial metrics, and positive order inflow outlook in post election phase will drive growth, according to Emkay Global Research.

The brokerage has re-initiated a coverage on the company with a ‘buy’ rating, and a target price Rs 2,100 per share, implying a 24% upside from Tuesday’s closing price.

HG Infra Engineering’s shift from small subcontractor into diversified infrastructure segment with good operating and financial metrics has supported swift and stress-free growth, Emkay Global said in a note on Tuesday.

The company is efficient in managing its supply chain and inventory. Its digitalisation initiatives are “top notch”, alongside its adept working capital management, the note said. HG Infra Engineering’s balance sheet also remained stable.

The infrastructure company witnessed a slowdown in orders in financial year 2024 because of general election and restriction on National Highways Authority of India, Emkay Global said.

The research firm expects pick-up in project awards in upcoming months under ‘India@2047’ vision. There could be further announcements of highway network development.

Emkay Global Research has penned down a 22%, 20%, and 21% revenue, Ebitda, and APAT over FY24-27, as order inflows are going to increase in the road infrastructure segment, the brokerage said.

HG Infra Engineering is also expecting a rapid growth in its railways and solar portfolio, the brokerage said.