Highway Infrastructure wins ₹220.66 crore toll order

Highway Infrastructure Limited (

) has received a ₹220.66 crore Letter of Acceptance from the Uttar Pradesh Expressways Industrial Development Authority for toll collection and operations on the Gorakhpur Link Expressway. The contract covers two years and includes deployment of four patrol-cum-safety vehicles. The first-year payable value is ₹105.08 crore, with a 10% escalation for the second year. Your view The important point is revenue visibility. This is an operating contract with a defined two-year period rather than a one-time order. I would watch execution, toll collection performance and the actual revenue contribution over the contract period. The stock moved nearly 5% on September 17 after the order announcement and touched ₹45.90 on the NSE. Disclosure: I do not hold any position or have any interest in Highway Infrastructure Limited as of the time of posting. Tags: Stock In News, Equity Research, Fundamental Views