Mukul Agarwal stock jumps 8% after reporting 200% YoY increase in net profits

The share price of this company, which specializes in the design, construction, operation, and maintenance of water and Waste-Water Treatment Plants and water supply projects, surged nearly 8 percent after reporting a remarkable 200 percent YoY increase in net profits and strong revenue growth in its recent quarterly results. 

Share Price Movement 

The share price of Enviro Infra Engineers Ltd reached an intra-day high of Rs.369.70 per share on Thursday, a significant rise from its previous close of Rs.342.53 per share. The share price has retreated since then and currently trading at Rs.348.71 each. 

Enviro Infra Engineers Ltd. was recently listed on the stock market on November 29, 2024. The shares debuted at a price approximately 50 percent higher than the issue price of Rs.148 per share. Since its listing, the share has delivered a remarkable return of over 135 percent from the IPO price. 

What Happened 

Such a bullish movement in the stock price was an outcome of an increase in revenue and net profits of the company in the recent quarter. 

According to its recent filing, in the quarter ending September 2024, Enviro Infra Engineers Ltd reported an 83 percent increase in revenue to Rs.213 crore compared to Rs.120 crore in Q2 FY24. Furthermore, on a quarter-over-quarter basis, the company saw an increase of 7 percent from Rs.205 crore in Q1 FY25. 

In the same period, the company reported a significant increase in net profit of 200 percent to Rs.36 crore in Q2 FY25, up from Rs.12 crore Q2 FY24 and 22 percent from Rs.30 crore in Q1 FY2025. 

In terms of return ratios, return on capital employed (ROCE) is currently at 47.4 percent, while return on equity (ROE) is at 50.8 percent. The company has a strong current ratio of 1.49 and a debt-to-equity ratio of 1.05. 

Order Book 

As of September 30, 2024, the company’s order book stood at Rs.1,957.6 Crores. It was awarded a Hybrid Annuity Model (HAM) project in Saharanpur, Uttar Pradesh, under the “Namami Gange Programme,” with a capacity of 135 MLD. 

Additionally, a subsidiary named Enviro Infra Engineers (Saharanpur) Private Limited was incorporated. The company achieved a turnover of Rs.70,000 lakhs. 

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Recent Developments 

Enviro Infra Engineers Ltd plans to scale up the size of projects undertaken, increasing the capacity of Sewage Treatment Plants (STPs) from the current 50 MLD to 200 MLD, and the capacity of Common Effluent Treatment Plants (CETPs) from 20 MLD to 50 MLD.

It is also expanding its presence in East and South India, with recent project awards in Jharkhand and Karnataka. Additionally, the company is exploring new initiatives in the “Waste to Energy” sector. 

Shareholding Pattern 

As of the August 2024 shareholding pattern, promoters hold a 70.02 percent stake in Enviro Infra Engineers Ltd. Foreign Institutional Investors (FII) hold 2.67 percent, Domestic Institutional Investors (DII) hold 10.85 percent, and retail investors hold 16.46 percent. Notably, ace investor Mukul Mahavir Agrawal holds a 1.03 percent stake in the company. 

About the company 

Enviro Infra Engineers Limited, founded in 2009, is a leading entity in India’s water and wastewater management industry. The company focuses on the design, construction, operation, and maintenance of a range of water treatment facilities, such as Sewage Treatment Plants (STPs), Water Treatment Plants (WTPs), and Common Effluent Treatment Plants (CETPs). 

Through its expertise, Enviro Infra Engineers plays a crucial role in addressing water and wastewater treatment challenges, contributing to sustainable environmental management in India. 

Written by – Siddesh S Raskar 

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