HEC Infra Projects Limited

Industrials — Engineering & Construction · NSE

₹114.00−₹0.72 (−0.63%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of HEC Infra Projects Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

HEC Infra Projects Limited provides engineering, procurement, and construction for electro-mechanical projects in India.

IndustryEngineering & Construction

SectorIndustrials

Employees77

Annual revenue₹176 Cr

How does it make money?

Turns over ₹176 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 77 employees supports ₹2.29 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.29 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 31.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +241% while net margin moved +369% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+241%

Margin effect+369%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.40 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

73/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

9.7x

3Y Median

22.2x

40 monthly readings · mean 42.5x · range 9.7x–149.3x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 56% below its 3y median of 22.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 68% below the peer median of 30.1x.

vs. its own history

Cheap

22.2x median over 40 months · -56%

vs. sector peers

Cheap

30.1x median of 3 peers · -68%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.1x

PEG

0.06

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 3.1% to 11.7% over 3 years.
Return on equity is rising
ROE has improved from 2.6% to 19.2%.
Return on capital is rising
ROCE has improved from 3.9% to 31.6%.
High return on capital employed
ROCE of 31.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 42% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 3.1% to 11.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 56% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 68% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 38% a year✓ 50.5% CAGR
Latest reported year was 11.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 29%✓ 31.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹124 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.7x

Cheap

Cheap against the generic band

P/B Ratio

1.88x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.73

Profitable

Profitable on a per-share basis

ROE

19.2%

Strong

Strong capital efficiency

ROCE

31.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.68x

Moderate

Moderate leverage

Revenue Growth (YoY)

11.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2.4%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.7%

Average

Average margins

Net Margin

7.0%

Average

Average bottom-line conversion

Current Ratio

1.51

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.40

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

113.9 / 118.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹52 Cr	₹74 Cr	₹112 Cr	₹176 Cr	+50.5%
EBITDA	₹2 Cr	₹5 Cr	₹17 Cr	₹21 Cr	+133.7%
EBITDA Margin	3.1%	6.6%	14.9%	11.7%	—
PAT (Net Profit)	₹1 Cr	₹5 Cr	₹9 Cr	₹13 Cr	+151.9%
EPS	₹0.78	₹4.65	₹9.08	₹11.63	+146.1%
ROE	2.6%	13.5%	17.4%	19.2%	—
ROCE	3.9%	12.5%	26.9%	31.6%	—
Total Debt	₹31 Cr	₹30 Cr	₹38 Cr	₹44 Cr	+12.3%
Free Cash Flow	₹7 Cr	₹7 Cr	-₹33 Cr	₹3 Cr	-24.1%

🟢 Revenue has grown at 50.5% a year over 3 years.

🟢 EBITDA has grown at 133.7% a year over 3 years.

🟢 EBITDA Margin has risen from 3.1% to 11.7% over 3 years (+8.6 pts).

🟢 PAT (Net Profit) has grown at 151.9% a year over 3 years.

🟢 EPS has grown at 146.1% a year over 3 years.

🟢 ROE has risen from 2.6% to 19.2% over 3 years (+16.6 pts).

🟢 ROCE has risen from 3.9% to 31.6% over 3 years (+27.7 pts).

🔴 Total Debt has grown at 12.3% a year over 3 years.

🔴 Free Cash Flow has shrunk at 24.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹135 Cr

Total Liabilities

₹70 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Corporate Actions

Ex-Dividend Date

19 Sept 2018

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

6 general

Concerns Surrounding HEC Infra Projects' (NSE:HECPROJECT) Performance

Simply Wall Street, 07 Jun

HEC Infra Projects Wins ₹12.78 Crore GETCO Order; Shares Flat

HDFC Sky, 31 Aug

HEC Infra Projects Ltd. Peer Comparison – Compare with Others

Value Research, 15 Sept

HEC Infra Projects Share Price: Wins Rs 12.78 Crore Order

Univest, 31 Aug

HEC Infra Projects jumps on bagging ₹36.50 Cr EPC order for 10.4 MW solar power plant

Alice Blue, 10 Mar

HEC Infra Projects to form Shivam Grid Solutions subsidiary

scanx.trade, 14 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑