Enviro Infra Engineers Limited is in the business of designing, construction, operation and maintenance of Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government authorities/bodies. WWTPs include Sewage Treatment Plants (STPs), Sewerage Schemes (SS) and Common Effluent Treatment Plants (CETPs) while WSSPs include Water Treatment Plants (WTPs) along with pumping stations and laying of pipelines for supply of water. The treatment process installed at most of the STPs and CETPs is Zero Liquid Discharge (ZLD) compliant and the treated water can be used for horticulture, washing, refrigeration and other process industries. The Company bids for tenders issued by State Governments and ULBs for developing WWTPs and WSSPs on an EPC or HAM basis. As on June 30, 2024, they have successfully developed 28 WWTPs and WSSPs across India in past seven years which includes 22 projects with 10 MLD capacity and above. As of June 30, 2024, the Order Book includes 21 WWTPs and WSSPs for an aggregate value of Rs 1,90,628.06 lakhs. Company has a team of 180 engineers who are supported by third-party consultants and industry experts to ensure compliance and quality standards laid down by the industry and government agencies & departments. They also have their own team for civil construction works thereby reducing dependence on third parties. The scope of the services typically includes design and engineering of the projects, procurement of raw materials, execution at site with overall project management up to the commissioning of projects. Post commissioning, operations and maintenance of these plants for a certain period of time is generally a part of the award. As per financial performance, Enviro Infra Engineers Limited has posted total income / net profits of Rs 225.62 Cr / Rs 34.55 Cr (FY22), Rs 341.66 Cr / 55.34 Cr (FY23), Rs 738 Cr / Rs 108.57 Cr (FY24) and Rs 207.46 Cr / 29.97 Cr (Q1 FY25). So as per previous financials data, company has shown very good growth. Company has an average EPS of Rs 5.95 and average RoNW of 41.44% for last three fiscals. Issue is priced at a P/BV of 6.27 as per NAV of Rs 23.6/- as on 30.06.24. If we attribute latest earnings of FY23, FY24 and annualised FY25 on equity post issue, then asking price is at a P/E of around 46.94, 23.93 and 21.67 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Hem Securities Limited is associated with this IPO, and have handled around 60 IPOs & SME IPOs in last three fiscals. From last 11 IPOs / SMEs, all opened above issue price or at par on the day of listing. As of now from last 11 IPOs, four are trading below issue price and remaining are trading above issue price as on today. ( As on 19.11.24 ) As per financials, Enviro Infra Engineers Limited has shown good growth, RoNW is 37.83% and P/E is 46.94, 23.93 and 21.67 respectively as per FY23, FY24 and annualised FY25 earnings. Company has shown exceptional growth in last 3 years and order book as on 30.06.24 is Rs 1,906.29/- Cr. Company is in business of designing, construction, operation and maintenance of Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government authorities/bodies, which is very competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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