H.G. Infra Engineering Analysis

dividend

Pros

Cons

• H.G. Infra Engineering is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
• No need to calculate the sustainability of H.G. Infra Engineering's dividends as it is not paying a notable one for India.
• H.G. Infra Engineering is not paying a notable dividend for India, therefore no need to check if the payments are stable.
• H.G. Infra Engineering's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• H.G. Infra Engineering's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Cash flow for H.G. Infra Engineering is expected to increase by more than 50% in 2 years time.
• H.G. Infra Engineering's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• H.G. Infra Engineering's revenue growth is expected to exceed the India market average.

Cons

• H.G. Infra Engineering's earnings are expected to grow by 16% yearly, however this is not considered high growth (20% yearly).
• H.G. Infra Engineering's earnings growth is positive but not above the India market average.
• H.G. Infra Engineering's earnings are expected to decrease over the next year.
• H.G. Infra Engineering's net income is expected to increase but not above the 50% threshold in 2 years time.
• H.G. Infra Engineering's revenue is expected to increase but not above the 50% threshold in 2 years time.
• H.G. Infra Engineering's revenue is expected to grow by 16.4% yearly, however this is not considered high growth (20% yearly).

health

Pros

• H.G. Infra Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• H.G. Infra Engineering is profitable, therefore cash runway is not a concern.
• H.G. Infra Engineering is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 3.2x debt.
• H.G. Infra Engineering's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (78.9% vs 55.4% today).
• Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).

Cons

• Debt is not well covered by operating cash flow (15.7%, less than 20% of total debt).
• H.G. Infra Engineering's level of debt (55.4%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the H.G. Infra Engineering board of directors is about average.
• Harendra's remuneration is about average for companies of similar size in India.
• Harendra's compensation has been consistent with company performance over the past year, both up more than 20%.
• More shares have been bought than sold by H.G. Infra Engineering individual insiders in the past 3 months.
• The tenure for the H.G. Infra Engineering management team is about average.

Cons

misc

Pros

Cons

• H.G. Infra Engineering is covered by less than 3 analysts.

past

Pros

• H.G. Infra Engineering has delivered over 20% year on year earnings growth in the past 5 years.
• H.G. Infra Engineering used its assets more efficiently than the IN Construction industry average last year based on Return on Assets.
• H.G. Infra Engineering has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• H.G. Infra Engineering's earnings growth has exceeded the IN Construction industry average in the past year (20.9% vs 2.3%).

Cons

• H.G. Infra Engineering's 1-year earnings growth is less than its 5-year average (20.9% vs 32.8%)
• H.G. Infra Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

value

Pros

• H.G. Infra Engineering is good value based on expected growth next year.
• H.G. Infra Engineering is good value based on earnings compared to the IN Construction industry average.
• H.G. Infra Engineering is good value based on earnings compared to the India market.
• 541019 outperformed the Construction industry which returned -40% over the past year.

Cons

• H.G. Infra Engineering's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• H.G. Infra Engineering's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• H.G. Infra Engineering is overvalued based on assets compared to the IN Construction industry average.
• 541019 underperformed the Market in India which returned -14.5% over the past year.
• BSE:541019 is up 3.6% underperforming the Construction industry which returned 7.1% over the past month.
• BSE:541019 is up 3.6% underperforming the market in India which returned 8% over the past month.