 "This recently listed Mukul Agrawal portfolio stock rose 78% vs issue price")
Shares of Enviro Infra Engineers soared 19 per cent to Rs 263.90 on the BSE in Tuesday’s intra-day trade after the company made a strong debut on Friday, November 29. Currently, the stock of the water supply & management company quotes at a 78 per cent premium when compared with its issue price of Rs 148 per share.
Enviro Infra Engineers made a stellar debut on the stock exchanges with shares of the company listed at Rs 207, a 40 per cent premium over the issue price. The stock, thereafter, gained another 8 per cent on Monday.
At 02:40 pm; Enviro Infra Engineers was trading 16 per cent higher at Rs 257.30, as compared to 0.78 per cent rise in the BSE Sensex. As many as a combined 47.33 million shares changed hands on the NSE and BSE.
Investor Mukul Mahavir Agrawal held 1.8 million equity shares representing 1.03 per cent stake in Enviro Infra Engineers, according to a shareholding pattern filed by the company post IPO.
Enviro Infra Engineers designs, constructs, operates, and maintains Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government bodies in India. The company executes projects funded by central and state governments under schemes like AMRUT, National Mission for Clean Ganga, and Jal Jeevan Mission. The company also plans to venture into waste-to-energy initiatives and expand geographically to East and South India.
The company’s order book has increased by 42 per cent, from Rs 1,496.7 crore in the financial year 2022-23 (FY23) to Rs 2,125.6 crore in FY24. The company maintained an order book of Rs 1,906.3 crore in June 2024. The order book to sales ratio for FY24 stood at 2.6x, providing revenue visibility for the next 2 to 3 years, according to analysts at Geojit Financial Services.
The ambitious initiatives of the Indian government, such as the Jal Jeevan Mission-Har Ghar Jal, AMRUT, the NAMAMI Gange Programme, and SWAJAL, present significant opportunities for the company's future growth. With a robust order pipeline and consistent financial performance featuring industry-leading margins, the company is well-positioned for future success, the brokerage firm said in its IPO note.
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The company’s order bid to conversion ratio stands at 39 per cent on an average over the last three FYs. The growth for the company is tied to timely rollout of tenders from government schemes pertaining to wastewater treatment and water supply. However, in H1FY25, the tendering activity was subdued due to general election and is expected to pick up in H2FY25. Despite that, their order book position as on June 30, 2024, remains strong at Rs 1,906 crore, offering revenue visibility of over 30 months on FY24 revenue basis. Project execution timeline for the current order book is 18-30 months, analysts at Indsec Securities and Finance said in IPO note.
Meanwhile, the Global Water and Wastewater Treatment market is expected to grow at a compound annual growth rate (CAGR) of 6.1 per cent, reaching $522 billion by 2033 from $306 billion in 2024. India's rapid population growth & urbanization increased the demand for potable water, benefiting companies like EIEL through the need for improved treatment and distribution systems.