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Infra Results: Healthy performance; ordering to kick in
- Infra EPC companies in our coverage reported a strong performance in Q1FY25. While NCC saw 23% growth in topline, HG Infra saw 18% YoY topline growth. Margins were largely stable for the companies at 9.3% and 16%, respectively.
- Both these companies have guided for strong topline guidance of 15% and 18-20%, respectively in FY25. While NCC alluded to ₹ 2 lakh crore of bid potential, NHAI ordering is also likely to kick in with government aiming to award ₹ 3 lakh crore of road orders in FY25, which will boost road players like HG Infra
- Furthermore, rate cut in H2FY25 will also boost overall EPC players bringing down their interest costs. We have a BUY on both NCC and HG infra for a target price of ₹ 400 and ₹ 1885, respectively
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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