1. At a Glance

Imagine a company that can literally sell you back your own pee after purifying it. That’s Denta Water & Infra Solutions Ltd (DWISL) – a Bengaluru-based EPC player that makes a living turning sewage into salvation. They’ve recharged lakes, built lift irrigation systems, and even starred in Bengaluru’s “world’s second-largest treated wastewater” flex. But beneath the sparkling water projects lies a messy truth: ballooning receivables, working capital tighter than your uncle’s wallet at weddings, and cash flows that look more like a desert mirage. Still, they’re now listed, debt-free, and carrying a juicy ₹7,524 Cr order book. Let’s splash into the details.

2. Introduction

Denta Water & Infra isn’t some fancy mineral water start-up promising pH-balanced liquid to Instagram influencers. Nope. This is hardcore infra—dirty trenches, recycled wastewater, government tenders, and a LOT of JCBs. Founded in 2016, the company jumped from zero to ₹221 Cr sales in FY25, mostly from water management (93%), with sprinklings of roads, railways, and random side hustles like coffee plantations and a 21-room beachside homestay. Yes, this company simultaneously recharges aquifers and serves cappuccinos in Udupi. Talk about diversification.

But here’s the catch: while the topline is growing (CAGR 19% over 3 years), cash flow has taken a nosedive. Debtor days shot from 39 to 154 in FY25, and working capital days ballooned to 322. Translation: they’re running massive projects, but government clients are paying on “BBMP time” (read: whenever they feel like).

The IPO in Jan 2025 gave them ₹220 Cr fresh ammo, and they boast about being “virtually debt-free.” The stock listed at ₹251, shot to ₹396, and is now hanging at ₹384, trading at 17.6× earnings—cheaper than peers like Va Tech Wabag and ION Exchange. But cheaper doesn’t always mean better—sometimes it’s just the “watered-down” option.

3. Business Model (WTF Do They Even Do?)

DWISL operates as an EPC (engineering, procurement & construction) contractor in water infra. Their “concept-to-commissioning” menu is basically:

• Feasibility studies (translation: sending interns to measure mud).
• Designing irrigation & lift water systems.
• Building dams, reservoirs, and water supply projects.
• Running O&M contracts so pipes don’t become snake dens.
• Speciality: groundwater recharge using treated wastewater.

They’ve executed 32 projects so far, with 17 more worth ₹11,004 Cr running, including KC Valley (Bengaluru’s sewage recycling poster child) and Jal Jeevan Mission projects. 97% of revenues come from government contracts—meaning predictable work but unpredictable payments.

And then comes their side quests:

• Agriculture: 98 acres of coffee, pepper, and cardamom farms.
• Hospitality: A 21-room beach resort in Udupi run by a group company.In short: a serious