🧠 At a Glance
HEC Infra Projects Ltd, a ₹187 Cr Gujarat-based EPC contractor, has grown profits at 76% CAGR over the last 5 years. From laying 220 kV cables to water pumping stations and solar BESS, it’s doing the thankless infra work — quietly. With FY25 revenue hitting ₹112 Cr and ROE at 21%, this stock has surged 2x in a year. But with high debtor days and zero dividend, is it overcharged now?
1. Introduction 🔌
Some stocks do influencer collabs.
Some get covered by CNBC.
And then there’s HEC Infra, which just quietly lays down high-voltage transmission lines — and fat profit numbers.
With its ₹172 price, 9x PAT growth YoY, and zero marketing budget, HEC is possibly the most boring multibagger in the making.
But is it all volts and no vision?
2. Business Model (WTF Do They Even Do?)
Infra contracting but with real wires, not just WiFi.
🔧 Services:
- Overhead transmission lines (up to 220 kV)
- Underground cable laying (up to 66 kV)
- Air Insulated Substations
- Solar PV plants and microgrid EPC
- Water infra: pumping stations, lighting systems
- SCADA systems, Battery Energy Storage Systems
🎓 Certifications:
- Class-A EPC contractor (Gujarat R&B)
- Class-1 CPWD contractor
- Licensed by GETCO
In short: If your electricity ever worked in rural Gujarat, HEC probably touched that wire.
3. Financials Overview – Profit, Margins, ROE, Growth 📈
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (Cr) | ₹52 | ₹74 | ₹112 |
| Net Profit (Cr) | ₹1 | ₹5 | ₹9 |
| ROE (%) | 7.8% | 20.0% | 21.0% |
| OPM (%) | 6.0% | 7.0% | 12.0% |
| EPS (₹) | ₹0.78 | ₹4.66 | ₹8.53 |
💥 3-Year Profit CAGR: 163%
⚡ 5-Year Profit CAGR: 76%
📊 TTM Profit Growth: 271%
Margins are now looking like actual EPC, not Earning Poorly Company.
4. Valuation – Is It Cheap, Meh, or Crack? 💸
| Metric | Value |
|---|---|
| CMP | ₹172 |
| P/E (TTM) | 20.2x |
| Book Value | ₹49 |
| P/B Ratio | 3.51x |
| Market Cap | ₹187 Cr |
🧮 EduFair™ Value Range: ₹135 – ₹180
👉 Based on:
- Sustainable PAT ₹7–9 Cr
- 15–18x PE justified for EPC growth + 20% ROE
- Illiquid smallcap = apply discount
🚨 Stock’s already near upper end. Room left? Only if growth stays crackling.
5. What’s Cooking – News, Triggers, Drama 🔥
📰 Recent Orders:
- ₹4.68 Cr water station project – June 2025
- ₹3.08 Cr augmentation order – June 2025 (both AMC)
📞 Concall May 2025:
- ₹47 Cr Q4 revenue (big jump)
- Order book looking healthy
- Targeting higher-margin BESS & solar infra
👷 Infra push + power capex = good sector tailwinds.
6. Balance Sheet – How Much Debt, How Many Dreams? 💣
| Metric | FY25 |
|---|---|
| Borrowings | ₹38 Cr |
| Equity + Res. | ₹53 Cr |
| Debt/Equity | ~0.7x |
| Net Worth | ₹53 Cr |
Nothing scary. Slightly elevated debt, but manageable.
7. Cash Flow – Sab Number Game Hai 🧾
| FY | CFO (₹ Cr) | FCF? |
|---|---|---|
| 2023 | ₹7 Cr | Positive |
| 2024 | ₹7 Cr | Okayish |
| 2025 | ₹-26 Cr | Bad vibes 😬 |
Working capital spike killed FY25 cash flows. Typical EPC problem. Debtor days hurt.
8. Ratios – Sexy or Stressy? 🩲
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 19% | 🔥 Solid |
| ROE | 21% | 🔥🔥 |
| Debtor Days | 155 | 🚨 Stress |
| Cash Conversion | 139 days | EPC Pain |
| Dividend Yield | 0% | Cheapstake |
🚩 Debtor days = major red flag. They need to chase payments faster than they chase tenders.
9. P&L Breakdown – Show Me the Money 💰
| Item | FY25 |
|---|---|
| Revenue | ₹112 Cr |
| Operating Profit | ₹14 Cr |
| Net Profit | ₹9 Cr |
| OPM | 12.4% |
| EPS | ₹8.53 |
No gimmicks. Core infra biz is finally scaling. But FY26 will decide if this is one-time or recurring.
10. Peer Comparison – Who Else in the Game? ⚔️
| Company | P/E | ROE % | OPM % | Mcap |
|---|---|---|---|---|
| HEC Infra | 20x | 21% | 12% | ₹187 Cr |
| Kalpataru Projects | 24x | 19% | 11% | ₹8,500 Cr |
| KEC Intl | 32x | 12% | 9% | ₹13,000 Cr |
HEC’s valuation isn’t crazy compared to larger EPC peers — if it can sustain ₹9 Cr+ PAT.
11. Miscellaneous – Shareholding, Promoters 🕵️♂️
| Category | Mar 2025 |
|---|---|
| Promoters | 74.93% |
| DII | 5.48% |
| Public | 19.58% |
📈 Promoters increased stake by 1.73% last quarter = good signal
👥 3,700+ shareholders now — base widening
12. EduInvesting Verdict™ 🧠
🚧 HEC Infra is what happens when a real infra company gets serious about profits.
✅ Great PAT growth, 20%+ ROE, strong Q4
⚠️ Debtor days, no dividend, negative cash flow = keep an eye
EduRating: ‘Mildly Electrifying’
📍Fair Value Range: ₹135 – ₹180
Above ₹180 = priced for perfection
Below ₹150 = potential power play for patient investors
✍️ Written by Prashant | 📅 July 1, 2025
Tags: HEC Infra Projects, EPC stocks, smallcap infra, solar EPC, Gujarat contractors, undervalued stocks, 76% profit CAGR, power infra, BESS, EduInvesting
