Water management stock in focus as JV receives ₹395 Cr order for water treatment project

Synopsis:
The Maharashtra Industrial Development Corporation has given Enviro Infra Engineers Ltd a ₹395.5 crore contract for pollution control measures in the Kolhapur district. The business will use ZLD technology to plan, construct, and run CETPs in three different industrial estates.

A small-cap company that works with government agencies and entities to design, build, operate, and maintain water and wastewater treatment plants (WWTPs) and water supply projects (WSSPs) has received a new work order of Rs. 395.5 crores.

With the market capitalization of Rs. 4,350 crores, the shares of Enviro Infra Engineers Ltd opened at Rs. 249.89, up 3.6 percent from its previous day’s close price of Rs. 241.18 per equity share, and it has reached a high of Rs. 254.99 in the same trading day.

Work Order

Enviro Infra Engineering Ltd has entered into a JV agreement with AltoraPro Infrastructure Private Limited in the name and style of “Enviro Infra Engineers Limited AIEPL JV”, in order to implement Panchganga River pollution control measures along with the following order.

The Maharashtra Industrial Development Corporation has given a contract to the JV for the design, supply, installation, construction, testing, commissioning, and operation & maintenance of Common Effluent Treatment Plants (CETPs) with Zero Liquid Discharge (ZLD) in the Ichalkaranji, Hatkanangale, and Yadrav Co-Op Industrial Estates in Kolhapur District. The contract is valued at Rs. 395.5 crore + applicable taxes, and it is to be executed over 24 months.

About the Company & Others

Since 2009, Enviro Infra Engineers Limited has provided water and wastewater solutions all over India. With an emphasis on sustainability, quality, and innovation, the company specializes in constructing Water Treatment Plants (WTPs), Sewage Treatment Plants (STPs), and Effluent Treatment Plants (ETPs) for communities and industries.

A return on equity (ROE) of about 27.4 percent and a return on capital employed (ROCE) of about 31.7 percent demonstrate the company’s strong position. At the moment, the company’s P/E ratio is 24.7x as compared to its industry P/E 26.2x.  

Its revenue from operations grew by 46.25 percent from Rs. 729 Crores in FY24 to Rs. 1066 Crores in FY25, accompanied by profits of Rs. 177 Crores in FY25 compared to 106 crores in FY24.

Written by Akshay Sanghavi

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