This recently listed stock zoomed 119% from issue price in 12 trading days

Shares of Enviro Infra Engineers hit a new high of Rs 324, as they surged 10 per cent on the BSE in Monday's intra-day trade amid heavy volumes in an otherwise weak market

Enviro Infra Engineers shares hit a new high of Rs 324, as they surged 10 per cent on the BSE in Monday’s intra-day trade amid heavy volumes in an otherwise weak market. 

 

At 12:47 PM, it was quoting 8 per cent higher at Rs 317.40, as compared to the 0.5 per cent decline in the BSE Sensex. The counter has seen a huge jump in average trading volumes, with a combined 46.98 million shares, representing 26.76 per cent of the total equity of the company, changing hands on the NSE and BSE.

 

The market price of the water supply and management company has continued its upward movement after making a strong debut on November 29. In 12 trading days, the stock price of the company has more than doubled. Currently, the stock is trading at a 118 per cent premium over its issue price of Rs 148 per share. Enviro Infra Engineers made a strong debut on the stock exchanges, with shares of the company listing at Rs 207, at a premium of 40 per cent over the issue price. 

 

 

Investor Mukul Mahavir Agrawal held 1.8 million equity shares, representing 1.03 per cent stake in Enviro Infra Engineers, according to a shareholding data 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 board of directors of Enviro Infra Engineers is scheduled to meet on Wednesday, December 18, 2024 to consider and approve the unaudited financial results of the company for the quarter and half year ended September 30, 2024.

 

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 and urbanisation increased the demand for potable water, benefiting companies like EIEL through the need for improved treatment and distribution systems. India’s water and wastewater sector is growing rapidly, driven by rising water demand and government initiatives to conserve water and provide access to every citizen; projects include Jal Jeevan Mission, Clean Ganga and others. 

 

As per a report by Frost & Sullivan, the sector is expected to grow up to $2.08 billion by 2025 from $1.31 billion in 2020, growing at a compound annual growth rate (CAGR) of 9.7 per cent. Hence advanced treatment technologies and infrastructure development offer opportunities for both public and private players in addressing the water challenge.

 

Enviro Infra Engineers aims to strengthen its position by scaling project capacities to 50–200 MLD for Sewage Treatment Plants (STPs) and 20–50 MLD (Million Liters per Day) for Common Effluent Treatment Plants (CETPs). The high-capacity projects provide competitive advantages, including better margins, economies of scale, and efficient resource utilisation.

 

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, Geojit Financial Services had stated in an IPO note for the company.

 

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 the general election and is expected to pick up in H2FY25.  Despite that, the company's 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, Indsec Securities and Finance said in another IPO note for the company.