Enviro Infra Engineers
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Enviro Infra Engineers Limited (EIEL) is strategically transforming into an integrated infrastructure platform, focusing on both its core water treatment business and renewable energy initiatives. Management's commentary highlights a robust order book of INR 6,721 crore, which supports Vista's forecast of accelerating revenue growth, projected at a 50.20% CAGR through FY26. However, margins are under pressure due to raw material inflation and operational costs, with management targeting a 20-22% EBITDA margin. The dual-track growth strategy, including large-scale municipal projects and diversification into renewable energy, positions EIEL favorably within a growing industry driven by government initiatives like AMRUT 2.0. While the competitive landscape poses challenges to pricing power, the company's commitment to operational excellence and ESG-compliant growth enhances its long-term outlook. Over the next 12-24 months, key opportunities include capitalizing on government spending and increasing demand for water security solutions, while watchpoints include potential project execution delays and inflationary pressures impacting margins
Why We Like This Stock
- Strong order book of INR 6,721 crore provides significant revenue visibility
- Strategic diversification into renewable energy enhances long-term growth prospects
- Government initiatives like AMRUT 2.0 are driving infrastructure investment
Things To Watch Out For
- Margins are under pressure due to raw material inflation and operational costs
- Execution risks related to project delays and government approvals could hinder growth
- Competitive pricing pressures may constrain profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 729 | 1,066 | 1,146 | 1,392 | 1,617 |
| Profit Before Tax (Cr.) | 147 | 241 | 259 | 297 | 350 |
| PBT Margin | 20.2% | 22.6% | 22.6% | 21.3% | 21.6% |
| Net Profit (Cr.) | 105 | 177 | 191 | 219 | 251 |
| Earnings Per Share | 6.1 | 10.0 | 10.6 | 12.1 | 14.3 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Enviro Infra Engineers Limited engages in the design, construction, operation, and maintenance of water and wastewater treatment plants (WWTPs) and water supply scheme projects (WSSPs) for government authorities/bodies in India. Its WWTPs include sewage treatment plants, sewerage schemes, and common effluent treatment plants; and WSSPs comprise water treatment plants along with pumping stations, as well as laying of pipelines for the supply of water. The company is also involved in engineering, procurement, and construction (EPC) execution of renewable power plant projects; and sale of renewable energy. Enviro Infra Engineers Limited was incorporated in 2009 and is based in Delhi, India.