1. At a Glance
Enviro Infra Engineers Ltd (EIEL) is India’s rising star in water treatment infra — designing, building, and maintaining wastewater and water supply projects for government clients. A 1000% revenue growth in 5 years, 30%+ ROCE, and now a ₹5,200 Cr market cap? Smells like money (and treated sludge).
2. Introduction with Hook
Imagine if Swachh Bharat Mission and Make in India had a baby — and that baby went to IIT for civil engineering. That’s Enviro Infra. It has scaled from ₹108 Cr revenue in FY20 to over ₹1,000 Cr in FY25 — all while keeping operations margin cleaner than municipal sewage.
- Revenue CAGR (5Y): 58%
- Profit CAGR (5Y): 102%
- ROCE: 32% | ROE: 27.4%
- PE: 29.6x | CMP: ₹298
Yet no dividend. Because capital allocation > celebrations.
3. Business Model (WTF Do They Even Do?)
Enviro Infra Engineers is a pure-play EPC contractor focused on:
- WWTPs (Waste Water Treatment Plants)
- WSSPs (Water Supply Scheme Projects)
- CETPs (Common Effluent Treatment Plants)
- Operation & Maintenance Contracts (O&M)
All primarily for government contracts — state water boards, municipal corporations, etc.
Revenue Model:
- EPC Contracts (Design + Build): 85%
- O&M (Recurring): 15% and growing
- Long-duration projects (12–36 months)
USP:
Focus on water infra + strong execution = insane scale-up with minimal equity dilution.
4. Financials Overview
| Metric | FY20 | FY25 | Growth |
|---|---|---|---|
| Revenue | ₹108 Cr | ₹1,066 Cr | 10x+ |
| EBITDA | ₹10 Cr | ₹268 Cr | 27x |
| PAT | ₹5 Cr | ₹177 Cr | 35x |
| OPM | 9% | 25% | ✅ |
| ROCE | – | 32% | 🔥 |
| Net Cash Flow (FY25) | ₹162 Cr |
Literally turned ₹1 into ₹10, and yet FIIs have ghosted.
5. Valuation
Current Price: ₹298
Market Cap: ₹5,222 Cr
Book Value: ₹56.7 → P/B = 5.25x
TTM EPS: ₹10.04 → PE = 29.6x
EduInvesting Fair Value Range:
- Base Case (25x PE on FY26E EPS ₹12) = ₹300
- Bull Case (30x PE on EPS ₹15) = ₹450
- Bear Case (Execution delays, FY26E EPS ₹9) = ₹225
Range: ₹225 – ₹450
You’re paying upfront for growth — but the order book and execution track record justify some optimism.
6. What’s Cooking – News, Triggers, Drama
- July 2025:
– ₹400 Cr CETP ZLD project win (Zero Liquid Discharge)
– ₹395.5 Cr CETP JV order in Maharashtra - Cyber Fraud Alert (July 2, 2025):
– ₹11.15 Cr loss, directors to forgo salary till recovered (rare corporate integrity moment) - GST Notices (July 11, 2025):
– ₹5.67 Cr penalty + interest for FY21–23 (pending case)
Trigger Watch:
- Possible diversification into PPP models?
- Order book > ₹3,000 Cr = FY27 revenue visibility
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹176 Cr |
| Reserves | ₹819 Cr |
| Borrowings | ₹234 Cr |
| Total Liabilities | ₹1,498 Cr |
| Fixed Assets | ₹70 Cr |
| Investments | ₹9 Cr |
| Other Assets (WIP, etc.) | ₹1,419 Cr |
Key Points:
- Balance sheet loaded with contract assets/WIP.
- Debt under control (D/E < 0.3x).
- Zero dividend = reinvestment story.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY24 | -₹68 Cr | -₹139 Cr | ₹206 Cr | -₹2 Cr |
| FY25 | -₹47 Cr | -₹263 Cr | ₹471 Cr | ₹162 Cr |
Takeaways:
- Heavy capex & working capital = CFO negative.
- FY25 funding via equity/loans.
- Expect CFO to normalize as O&M revenues grow.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 31.7% |
| ROE | 27.4% |
| OPM | 25% |
| Debtor Days | 70 |
| Inventory Days | 21 |
| Payables Days | 85 |
| Working Cap Days | 139 |
| Cash Conversion | +7 days |
Verdict:
Sexy margins, above-average returns — but increasing WC cycle could be stressy if new orders get delayed.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT | EPS |
|---|---|---|---|---|
| FY23 | ₹338 Cr | ₹82 Cr | ₹55 Cr | ₹21.46 |
| FY24 | ₹729 Cr | ₹166 Cr | ₹106 Cr | ₹7.92 |
| FY25 | ₹1,066 Cr | ₹268 Cr | ₹177 Cr | ₹10.04 |
Highlights:
- Strong jump in topline & bottomline.
- FY24 dip in EPS due to expanded equity capital.
- FY25 saw margin restoration.
11. Peer Comparison
| Company | PE | ROCE | OPM | Sales (TTM) | PAT (TTM) |
|---|---|---|---|---|---|
| Va Tech Wabag | 31.4 | 20% | 12.8% | ₹3,294 Cr | ₹294 Cr |
| ION Exchange | 39.1 | 22% | 10.7% | ₹2,737 Cr | ₹208 Cr |
| Enviro Infra | 29.6 | 31.7% | 25.1% | ₹1,066 Cr | ₹176 Cr |
| Apex Ecotech | 19.1 | 37.2% | 22.0% | ₹70 Cr | ₹7 Cr |
Takeaway:
Enviro Infra is punching above its weight in ROCE and margins — but still has catch-up to do in revenue scale.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 70.09% |
| FIIs | 0.33% |
| DIIs | 2.71% |
| Public | 26.87% |
| No. of Shareholders | 2.46 lakh |
Notes:
- Stable promoter holding.
- Retail-driven float, low FII/DII exposure.
- Zero pledging.
- Could rerate if institutions come sniffing.
13. EduInvesting Verdict™
Enviro Infra is a classic growth stock in an unsexy but essential sector. It treats sewage but prints returns — with a 1000% revenue scale-up, a clean balance sheet, and O&M annuity potential.
It’s early innings. If they keep winning large EPC orders and transition to recurring revenue, it could graduate from EPC laborer to infra kingpin.
For now? It’s a story of execution, discipline, and riding the clean water megatrend. Just… maybe don’t click on the raw sewage pics in the annual report.
Metadata
– Written by EduInvesting Team | 18 July 2025
– Tags: Enviro Infra Engineers, Water Infra, CETP Projects, EPC Stocks, Hidden Gems, ROCE Kings, Smallcap Infra
