Apex Ecotech shares jumps 8% after receiving LoI from Larsen & Toubro

Synopsis: Apex Ecotech Limited’s shares rose 8% after receiving an LOI from Larsen & Toubro Limited, valued at ₹45-55 crores. The project involves building Water Treatment Plants, Effluent Treatment Plants, and Zero Liquid Discharge systems for an automobile plant in Tamil Nadu, set for completion by 2027.

The shares of the Micro-Cap company specializing in providing end-to-end, sustainable, and energy-efficient water and wastewater treatment, recycling, and reuse solutions are in focus upon receiving a Letter of Intent (LOI) from Larsen & Toubro Limited.

With a market capitalization of Rs. 171.41 Crores on Friday, the shares of Apex Ecotech Limited jumped up to 8.33 percent, reaching a high of Rs. 130.00 compared to its previous close of Rs. 120.00.

What Happened

Apex Ecotech Limited, engaged in providing end-to-end, sustainable, and energy-efficient water and wastewater treatment, recycling, and reuse solutions, has secured a Letter of Intent (LOI) from Larsen & Toubro Limited with a price range of Rs.  45 crores to 55 crores.

The LoI pertains to the construction of Water Treatment Plants (WTP), Effluent Treatment Plants (ETP), and Zero Liquid Discharge (ZLD) systems for an automobile plant in Tamil Nadu, to be completed between 2026 and 2027.

Financials & Others

The company’s revenue rose by 50 percent from Rs. 21.70 crore in September 2024 to Rs. 32.57 crore in September 2025. Meanwhile, the Net profit rose from  Rs. 1.55 crore to  Rs. 2.58 crore during the same period.

The company demonstrates impressive financial performance, with a Return on Capital Employed (ROCE) of 37.5% and a Return on Equity (ROE) of 28.1%, reflecting strong profitability and efficient use of capital. Its debt-to-equity ratio is notably low at 0, suggesting a solid, almost debt-free balance sheet. 

In comparison to the industry P/E ratio of 18.4, the company’s stock P/E of 17.9 indicates it is fairly valued relative to its sector, while the low PEG ratio of 0.15 highlights attractive growth potential at a reasonable price.

Furthermore, the company has achieved a robust 26.2% compound annual growth rate (CAGR) in profits over the past five years, showcasing consistent and strong growth. The three-year average ROE of 39.9% underscores the company’s ability to generate significant returns on equity, reinforcing its strong track record and solid investor confidence.

Apex Ecotech Limited was established in 2009 by a group of dedicated professionals and has emerged as a leading provider of advanced water and wastewater treatment solutions. It specialises in delivering sustainable, energy-efficient, and eco-friendly systems for effective water resource management. They serve various industries with services including Effluent Treatment Plants (ETP), Sewage Treatment Plants (STP), and Zero Liquid Discharge (ZLD) systems. 

The company’s extensive range of products, systems, and services is meticulously designed to meet the complex treatment and recycling needs of various industries and other establishments. By focusing on optimal design and innovative solutions, and ensure that their clients achieve both operational efficiency and environmental responsibility.

The company, with over 15 years of experience the company has successfully delivered 300+ plants and projects across 22+ states in India and 7+ countries. It processes more than 180 million liters of treated water daily, providing clean and safe water to communities and industries. Trusted by over 200 clients, the company offers reliable and sustainable water and wastewater management solutions globally.

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