Target: ₹309
CMP: ₹200.15
Incorporated in 2009, Enviro Infra Engineers Ltd (EIEL) is a leading Indian water and wastewater infrastructure company providing turnkey design, construction and operations & maintenance (O&M) solutions for government and government-backed clients. The company operates across Engineering, Procurement and Construction (EPC), Hybrid Annuity Model (HAM) and O&M project models, with capabilities spanning Sewage Treatment Plants (STPs), Sewerage Schemes (SS), Common Effluent Treatment Plants (CETPs), Water Treatment Plants (WTPs), pumping stations and pipeline networks.
With its growing presence in India’s water and wastewater treatment sector and a diversified order-book, EIEL is well positioned for sustainable growth. Limited exposure to Jal Jeevan Mission (JJM) schemes and participation across multiple government programmes have helped the company navigate industry-wide challenges.
Supported by increased government spending and participation in CETPs, ZLD and HAM projects, we expect the company to deliver about 25 per cent revenue CAGR over FY25-28E, with EBITDA margins moderating modestly to about 24 per cent by FY28E. Based on these factors, we initiate coverage on EIEL with a Buy rating, valuing the business at 17x P/E on FY28E, implying an upside of around 52.3 per cent.