1. At a Glance
Energy InfrTrust is a Brookfield-backed InvIT that owns the East-West Pipeline, basically India’s energy highway. The yield is a juicy 9.96%, but profits have collapsed 89% in a year. Stock trades like a dividend darling while P/E screams horror.
2. Introduction with Hook
Imagine owning a toll road where cars barely pass, yet you’re paying VIP ticket prices. That’s Energy InfrTrust. It’s a stable cash flow machine wrapped in market mood swings. Two spicy stats:
- P/E: 607 (valuation stretched like yoga pants)
- ROE: 0.46% (returns flatter than cold soda)
3. Business Model (WTF Do They Even Do?)
EIT is an InvIT, not a regular company. It owns Pipeline Infrastructure Ltd, leasing and operating the East-West gas pipeline (ex-Reliance asset). Revenue comes from tariffs paid by users. Sponsor is Brookfield, O&M managed by a Reliance-Brookfield JV. Think of it as a pipeline toll booth with global parents.
4. Financials Overview
- FY25 Sales: ₹4,007 Cr (steady)
- Net Profit: ₹9 Cr (ouch, collapsed from ₹822 Cr)
- OPM: 35% (down from 60%)
- Market Cap: ₹5,441 Cr
Revenue solid, profits… not so much.
5. Valuation
- P/E: 607 (insane for an InvIT)
- CMP/BV: 3.9x (rich)
Fair Value Range: ₹40–₹60 based on yield and realistic earnings.
6. What’s Cooking – News, Triggers, Drama
- Raised ₹6,452 Cr via debentures in early 2024.
- AAA credit rating (solid balance sheet).
- Brookfield changes in management and structure.
- Profit collapse in FY25 spooked investors.
Drama: bond raise, profit drop, yield bait.
7. Balance Sheet
| Particulars | FY24 | FY25 |
|---|---|---|
| Assets | ₹14,684 Cr | ₹13,660 Cr |
| Liabilities | ₹10,710 Cr | ₹10,663 Cr |
| Borrowings | ₹6,479 Cr | ₹6,604 Cr |
| Net Worth | ₹4,228 Cr | ₹3,740 Cr |
Leverage remains high, but manageable under InvIT norms.
8. Cash Flow – Sab Number Game Hai
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | ₹1,600 Cr | ₹2,079 Cr | ₹1,182 Cr |
| Investing CF | ₹416 Cr | ₹-295 Cr | ₹422 Cr |
| Financing CF | ₹-1,628 Cr | ₹-1,570 Cr | ₹-1,560 Cr |
Healthy operational cash but heavy payouts and debt costs.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 0.46% |
| ROCE | 4.2% |
| P/E | 607 |
| Dividend Yield | 9.96% |
| D/E | 1.8 |
Sexy yield, stressy fundamentals.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹3,666 Cr | ₹2,186 Cr | ₹822 Cr |
| FY24 | ₹4,007 Cr | ₹1,419 Cr | ₹9 Cr |
PAT fell off a cliff; dividend still high—unsustainable?
11. Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| Altius Telecom | 19,580 | 839 | 54 |
| Indus InfraTrust | 745 | 463 | 11 |
| Cube Highways | 3,307 | -83 | N/A |
| Energy InfrTrust | 4,007 | 9 | 607 |
Peers look saner; EIT is the odd one out.
12. Miscellaneous – Shareholding, Promoters
- Sponsor: Brookfield (Rapid Holdings 2 Pte Ltd)
- Trustee: IDBI Trusteeship
- O&M: JV with Reliance
- Public investors: enjoy high yield, ignore valuation nightmares.
13. EduInvesting Verdictâ„¢
Energy InfrTrust gives fat dividends, but with profits cratering and P/E in the stratosphere, it’s a yield trap in disguise. Good for cash flow hunters, risky for valuation purists.
Written by EduInvesting Team | 27 July 2025
Tags: Energy Infrastructure Trust, Brookfield InvIT, High Dividend Yield, Pipeline Assets, Edu Style Analysis, Premium Research
