Highway Infrastructure shares debuted on RS 117 each, which marked a premium of 67% compared to the issue price of RS 70.
The stellar debut followed a robust question during the IPO phase, in combination with investor optimism in relation to the infrastructure sector, which continues to see strong trends in the field of order version and a government commitment to development projects.
What should investors do now?
Brokers who follow the IPO of the company have maintained their positive attitude towards Hil, with a focus on the long -term potential in the infrastructure development and management segment.
Angel One
According to Angel One, Hil delivered stable financial performance in FY25, with the turnover of RS 495.72 Crore and a profit after tax (Pat) of RS 22.40 Crore reported, resulting in a Pat -margin of 4.5%. The EBITDA margin of the company was 6.3%, while return on capital (ROCE) and return on equity (roe) or approximately 16.6%and 19%respectively were levels that indicate efficient capital use. The IPO, which increased RS 130 Crore, consisted of a new issue of RS 97.52 Crore and an offer for sale of RS 32.48 Crore. The proceeds from the new issue will mainly be used to finance the working capital requirements of RS 65 Crore, with the remaining amount reserved for general business purposes. Wise, the IPO of Hil was priced on a post-published p/e of 22.4x, of which Angel said that was in accordance with sector fields. Supported by consistent order book performance, low leverage and strong policy language wind in the infrastructure space, the brokerage of the IPO has given a ‘subscribe’ for long -term assessment.
Bajaj Broking
Bajaj Broking has also assigned a ‘subscribe’ for a long -term recommendation about the shares. The brokerage emphasized that Hil is involved in infrastructure development and management services, with toll collection as a primary segment, followed by EPC (engineering, purchasing and construction) and real estate segments.
In the last three taxes, HIL posted an average profit per share (EPS) of RS 3.13 and an average return on Netto Worth (RONW) of 19.71%. In the field of financial performance, the consolidated total income of the company and the net profit have grown steadily:
- FY23: RS 456.83 Crore Revenue / RS 13.80 Crore Pat
- FY24: RS 576.58 Crore Revenue / RS 21.41 Crore Pat
- FY25: RS 504.48 Crore Revenue / RS 22.40 Crore Pat
Bajaj Broking noted that on the basis of FY25 the income annualized, the asking price appreciated the share on a p/e of 22.44, while the p/e on FY24 income at 23.41 was.
Highway Infrastructure IPO -Details
The IPO of RS 130 Crore was split into a new problem and an offer for sale. Of the RS 97.52 CRORE Fresh issue revenues, RS 65 CRORE will go to the financing of work capital needs, with the balance that is allocated for general business purposes. The RS 32.48 Crore offer for sale offered an exit option for some existing shareholders.
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((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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