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HG Infra Shares Rally on Major Metro Rail Win
HG Infra Engineering Limited saw a sharp 6% surge in its share price on the BSE after winning a ₹1,415 crore contract from the Delhi Metro Rail Corporation (DMRC). The infrastructure giant, known for highways and bridges, has strengthened its position in urban transport with this metro rail project.
Key Details of the Metro Contract
- Project Scope: Construction of an elevated viaduct and five metro stations under Delhi Metro’s Maujpur-Majlis Park corridor (Phase-IV).
- Significance: Enhances East Delhi connectivity, eases traffic congestion.
- Bidding Win: HG Infra emerged as the lowest bidder, outperforming competitors.
This contract diversifies HG Infra’s portfolio beyond highways and into high-growth urban infrastructure, aligning with India’s PM Gati Shakti initiative.
Market Response & Financial Impact
- Stock Performance: Shares hit an 8-week high, closing at ₹1,287.50 on the BSE.
- Order Book Boost: Adds to the company’s ₹12,000+ crore order book (Q1 FY25).
- Analyst Outlook: Brokerages maintain a “Buy” rating, citing strong margins (15%+ EBITDA) and revenue visibility.
Why This Contract Matters
- Sector Diversification: Reduces reliance on highways, expands into metro projects.
- Government Focus: Taps into India’s ₹1.2 lakh crore metro expansion plans.
- Long-Term Revenue: Execution over 3–4 years ensures steady cash flow.
Future Growth Prospects
HG Infra is poised to bid for more metro and railway projects, supported by:
– Partnerships with international firms for advanced construction tech.
– India’s infrastructure sector growing at 10–12% CAGR.
Conclusion
The ₹1,415 crore DMRC win reinforces HG Infra’s market position and investor confidence. With a robust order pipeline and execution prowess, the stock could see sustained gains.
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