Enviro Infra Engineers Ltd IPO Review
Enviro Infra Engineers Ltd., a company specializing in designing, constructing, operating, and maintaining water and wastewater treatment plants and supply schemes, recently announced its Initial Public Offering (IPO). This article delves into the details of the Enviro Infra Engineers Ltd. IPO, analyzes the company’s background and financial performance, and explores the potential benefits and risks associated with investing in this offering.
IPO Full Details
- Issue Type: Combination of fresh issue and offer for sale
- Issue Size: ₹650.43 crore (Fresh Issue: ₹572.46 crore, Offer for Sale: ₹77.97 crore)
- Price Band: ₹140 – ₹148 per share
- Listing: BSE, NSE
- Tentative Listing Date: November 29, 2024 (Subject to change)
- Issue Open Date: November 22, 2024 (Closed November 26, 2024)
Company Overview
Enviro Infra Engineers Ltd. is a leading player in the Indian water and wastewater treatment sector. They boast a proven track record, having completed over 28 water and wastewater treatment projects across India, including 22 projects with a capacity exceeding 10 MLD (Million Litres per Day). The company focuses on delivering sustainable and efficient water infrastructure solutions tailored to the specific needs of its clients.
Company Address Details:
- Registered Office Address: C-302, Third Floor, SJR Green Avenue, Kondapur, Hyderabad – 500084, India.
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Company Website: http://www.eiel.in/
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Company Contact Number: 011-40591549
Company Financial Data
| Fiscal Year | Total Income (Crore INR) | Net Profit (Crore INR) |
|---|---|---|
| FY2022 | 225.62 | 34.55 |
| FY2023 | 341.66 | 55.34 |
| FY2024 | 738.00 | 108.57 |
| Q1 FY2025 (April-June 2024)** | 207.46 | 29.97 |
Key Points:
- Revenue Growth: Enviro Infra Engineers Ltd. has demonstrated healthy revenue growth over the past three years.
- Profitability Increase: The company’s net profit has also shown significant improvement year-on-year.
- Strong Order Book: As of June 30, 2024, Enviro Infra Engineers Ltd. possesses an order book worth ₹1906 crore, indicating a strong pipeline of future projects.
Should You Invest for Higher Return?
Reasons to Invest:
- Growing Industry: India’s water and wastewater treatment sector is experiencing rapid growth, driven by rising urbanization, industrialization, and increasing awareness about sustainable water management practices. Enviro Infra Engineers Ltd. is well-positioned to capitalize on this expanding market.
- Strong Execution Capabilities: The company has a proven track record of successful project completion and a reputation for delivering high-quality work.
- Financially Sound: Enviro Infra Engineers Ltd.’s recent financial performance has been positive, with notable growth in revenue and profitability.
- Government Focus: The Indian government is actively promoting water infrastructure development, creating a favorable environment for the company’s growth.
Reasons to Consider Before Investing:
- Dependence on Government Contracts: A significant portion of Enviro Infra Engineers Ltd.’s business comes from government contracts. Changes in government policies or delays in project approvals could impact the company’s future performance.
- Competition: The water and wastewater treatment sector is becoming increasingly competitive with new players entering the market.
- Valuation Concerns: Depending on the final price band, some analysts believe the IPO might be fully priced, offering limited room for future stock price appreciation.
Conclusion
The Enviro Infra Engineers Ltd. IPO presents an opportunity to invest in a company operating in a rapidly growing and essential sector. Their strong financials, proven track record, and order book offer promising prospects. However, investors should consider the dependence on government contracts, competition in the industry, and potential valuation concerns before making an investment decision.
Disclaimer:
The information provided in this article is for informational purposes only and should not be construed as financial advice. It’s essential to conduct your own research or consult with a qualified financial advisor before making any investment decisions. Investing in stocks and other securities involves significant risk, including the potential loss of your principal investment. Past performance is not indicative of future results.
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