Felix Industries Ltd – “From Drains to Green Hydrogen Dreams”

1. At a Glance

Felix Industries isn’t your usual SME stock selling masala papad and calling it innovation. This Gujarat-based company wants to clean your drains, recycle your oil, incinerate your garbage, and one day, maybe fuel your EV with green hydrogen. At ₹173 per share and a market cap of ₹237 Cr, Felix looks like the kid who just topped the mohalla exam and now claims he’ll crack NASA.

2. Introduction

When you hear “waste management,” you probably imagine a municipal van with Bollywood songs blaring at 6 am. Felix Industries is trying to change that perception. Founded in 2010, the company has positioned itself as an environmental engineering firm with a “Zero Waste Philosophy.”

The idea is simple: waste is not waste, it’s misplaced wealth. From wastewater treatment to pyrolysis of plastics, Felix is selling solutions to industries desperate to avoid CPCB show-cause notices. And because green hydrogen is the flavour of the decade (thanks to Ambani, Adani, and G20 speeches), Felix is now marketing itself as a future hydrogen player too.

But while the order book looks healthy (contracts worth ₹140 Cr+ bagged in 2025), revenue is still only ₹37 Cr annually. Which begs the question: Are we staring at the next VA Tech Wabag or just another SME stock that will remain stuck in “bagging orders” mode?

3. Business Model – WTF Do They Even Do?

Felix has four legs on its environmental chariot:

1. Water & Wastewater Management – ETPs, CETPs, ZLD systems, STPs. Basically, every acronym you hated in environmental science. Their RoSoft water purification and brine recovery tech gives them an edge.
2. Solid Waste Management – Burning, melting, and cooking your garbage into energy-rich outputs like syngas, biochar, and oils. In short, turning kachra into jugaad fuel.
3. Hydrocarbon Recycling – Converting used oil into diesel and gasoline. Essentially, second-hand petrol station.
4. Green Hydrogen – Using electrolysers to produce clean hydrogen from zero-TDS water. Still early stage, but at least they’re talking the right buzzwords.

Their contract models are also flexible: EPC, BOOT, O&M, and PPP. Felix will build your plant, run it, or just maintain it while billing you like Airtel.

4. Financials Overview

Commentary: Revenues are rising like monsoon floods, profits are finally visible, and margins (27%) look juicy. But one bad quarter of execution delays and PAT could vanish faster than municipal trucks on strike.

5. Valuation – Fair Value Range Only

• P/E Method: EPS ₹6.0 (FY25). Assign 20–30x range → ₹120 – ₹180.
• EV/EBITDA Method: EBITDA ₹8.3 Cr. EV/EBITDA 15–20 → ₹125 – ₹165 per share.
• DCF Method: Assume 20% CAGR for 5 yrs, terminal 6%, discount 12%. Range