Are you looking for a high-yield investment backed by India’s construction technology revolution? Hella Infra Market’s latest Non-Convertible Debentures (NCDs) might be your answer. Let’s dive into why these NCDs are turning heads in the community.
The Hella Infra Success Story
Imagine Amazon, but for construction materials. That’s exactly what Hella Infra has built since 2016. They’ve transformed from a startup to a ₹14,077 crore revenue giant, making life easier for builders across India. From cement to steel, from paints to sanitaryware – they’re the one-stop shop that’s changing how India builds.
Breaking Down the NCD Offering
Here’s what makes these NCDs attractive:
- Impressive 10.47% monthly interest payments
- Solid A- rating from India Ratings
- Senior secured status for better safety
- Convenient ₹10,000 face value
- Clear maturity date: June 26, 2025
The Numbers That Matter: Financial Health Check
| Particulars | Unit | FY 23 | FY 24 |
| Financial Performance | |||
| Revenue | (₹ Cr.) | 11,846.55 | 14,077 |
| Gross Profit Margin | (%) | 2.314 | 2 |
| PAT | (₹ Cr.) | 155.28 | 293 |
| PAT Margin | (%) | 1.31 | 2 |
| Capital Position | |||
| Total Equity | (₹ Cr.) | 2,520.73 | 2,912 |
| Total Borrowings | (₹ Cr.) | 2,643.6 | 3,878 |
| Working Capital Position | |||
| Inventories | (₹ Cr.) | 263.17 | 644 |
| Trade Receivables | (₹ Cr.) | 3,986.33 | 3,718 |
| Trade Payables | (₹ Cr.) | 1,702.35 | 1,367 |
| Cash & Cash Equivalents | (₹ Cr.) | 634.89 Cr | 8 Cr |
| Key Financial Ratio | |||
| Debt/Equity | (Times) | 1.05 | 1.1 |
| Interest Coverage Ratio | (Times) | 2.21 | 2.1 |
| EBITDA Margin | (%) | 6.3 | 6.6 |
Revenue Growth That Turns Heads
- FY24 Revenue: ₹14,077.55 crores
- Growth from previous year: 18.8%
- What this means: They’re not just growing; they’re thriving
Profitability That Speaks Volumes
- Net Profit: ₹293.7 crores in FY24
- Profit margin: 2.09%
- EBITDA margin: 6.6%
- Translation: They’re making real money in a typically low-margin industry
Balance Sheet Strength
- Solid Equity Position
- Total Equity: ₹2,911.7 crores
- Shows strong fundamental value
- Smart Debt Management
- Debt-to-Equity: 1.33 times
- Interest Coverage Ratio: 2.1 times
- Meaning: They can comfortably handle their debt obligations
- Working Capital Excellence
- Healthy cash reserves: ₹822 crores
- Strong receivables: ₹3,718.8 crores
- Manageable payables: ₹1,367.1 crores
- Bottom line: They’re running a tight ship
Why These NCDs Stand Out
Rock-Solid Security
- 2x security cover on pledged shares
- Personal guarantees from founders
- Regular monitoring of security coverage
- Think of it as a double-lock system for your investment
Strong Financial Discipline
Their covenants ensure disciplined financial management:
- Debt to EBITDA stays below 5.0x
- Positive PAT maintained
- Conservative liability management
- It’s like having a financial fitness tracker for your investment
The Bigger Picture: Market Opportunity
The numbers are staggering:
- Construction materials market: $138 billion → $215 billion by FY27
- Government’s $1.4 trillion infrastructure pipeline
- 9% contribution to India’s GDP
- 51 million+ employment generation
Smart Moves Making Waves
Hella Infra isn’t sitting still. They’ve made strategic acquisitions:
- Shalimar Paints: Adding manufacturing muscle
- RDC Concrete: Expanding product range
- Result: Stronger presence across B2B, B2B2C, and D2C channels
Who Should Consider These NCDs?
Perfect for investors who want:
- Monthly income through regular interest payments
- Medium-term investment horizon (until June 2025)
- Exposure to India’s infrastructure growth story
- Security-backed fixed-income options
The Bottom Line
Hella Infra’s NCDs offer:
- Professional management with a proven track record
- Backing of India’s infrastructure growth story
- Comprehensive security and disciplined financial management
If you want to know more about these NCDs, contact us or explore our platform today.
