Highway Infrastructure Limited

Highway Infrastructure Limited is an infrastructure development and management Company. The Company is engaged in the business of tollway collection, EPC Infra and real estate business. While the Company’s business spans facets of infrastructure development and management, tollway collection stands out as a significant mix of its business, driving the revenues and financial performance followed by EPC Infra business which comprises of executing construction development projects of different types like roads, bridges, tanks, irrigation related construction and civil buildings etc., for customers. As on May 31, 2025, the consolidated Order Book is Rs 6,663.07 million, comprising of Rs 595.30 million in tollway collection business and Rs 6,067.77 million in EPC Infra business. HIL is one of the few toll operators who have managed tollway collection based on ANPR technology on Delhi-Meerut Expressway. The Company has operated tolls on some of the known inter-state and intra-state expressways across 11 states and one Union Territory. The Company employs updated Electronic Tollway Collection (ETC) systems, which leverage Radio Frequency Identification (RFID) tags and digital payment platforms to facilitate seamless and contact less toll payments. One of the primary revenue streams for the Company is the operation and management of tollway collection systems on highway projects. Such projects are procured by way of a competitive bidding process. As on May 31, 2025, they have completed 27 tollway collection projects and are currently operating 04 tollway collection projects. As per financial performance, Highway Infrastructure Limited has posted total income / net profits of Rs 456.83 Cr / 13.80 Cr (FY23), Rs 576.57 Cr / Rs 21.41 Cr (FY24) and Rs 504.48 Cr / 22.40 Cr (FY25). So as per previous financials data, company has shown zig-zag results. Company has an average EPS of Rs 3.13 and average RoNW of 19.71% for last three fiscals. Issue is priced at a P/BV of 3.44 as per NAV of Rs 20.37/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around 36.38, 23.44 and 22.41 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Pantomath Capital Advisors Private Limited is associated with this IPO, and have handled 10 IPOs in last three fiscal years. From last 10 IPOs, all opened above issue price or at par on the day of listing. As of now from last 10 IPOs, one is trading below issue price and remaining all above issue price as on today. ( As on 28.07.25 ) As per financials, Highway Infrastructure Limited has shown zig-zag results, RoNW is 19.03% and P/E is 36.38, 23.44 and 22.41 respectively as per FY23, FY24 and FY25 earnings. So issue looks fully priced. Current order book as one 31.05.25 is Rs 6,663.07 million. Company is in the business of tollway collection, EPC Infra and real estate business, which is highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Arun Kumar Jain
• 2 Anoop Agrawal
• 3 Riddharth Jain