Why, you ask? It belongs to the red-hot water management sector, and we recently explained why stocks involved in this industry could make big moves in 2025.
This company is backed by some of the big names in the Indian stock market–Sunil Singhania and Mukul Agrawal.
But below the surface, there is an intricate dynamic at play that may be viewed as ‘make or break’ for this company.
Given all these factors, an overview of how this newly listed stock ended up in today’s situation, is warranted.
Let’s take it from the top…
About Enviro Infra Engineers
Enviro Infra Engineers is engaged in the design, construction, operation, and maintenance of water and waste-water treatment plants and water supply projects for government agencies.
The company was incorporated in 2009, and it is promoted by Sanjay Jain and Manish Jain.
The company has a special purpose vehicle called EIEPL Bareilly Infra Engineers for its hybrid annuity model (HAM) project.
This company was established in 2021, and it’s currently developing three sewage treatment plants at Bareilly. This project has been awarded by Uttar Pradesh Jal Nigam and is funded by National Mission for Clean Ganga.
In addition, it holds a 74% stake in one of its subsidiaries, EIEL Mathura Infra Engineers. This company is currently building a 60 MLD sewage treatment plant and sewerage scheme in Mathura. The project also includes installing a solar power plant.
IPO Details
Shares of Enviro Infra Engineers made a strong start as it was listed at ₹220, a premium of almost 50% over its issue price of ₹148.
The company raised ₹650 crore through the IPO and was listed on 29 November 2024.
Out of the total size, the fresh issue size was ₹570 crore which the company plans to utilize for:
A) Working capital requirements
B) Infusion of funds in its subsidiary
C) Repayment of borrowings
D) Funding inorganic growth
E) General corporate purposes
Backed by big names
After looking at the latest shareholding pattern of the company, we saw some big names of Dalal Street on the company’s public shareholders list.
Ace Investor Mukul Agrawal has invested in the recently listed company, and he currently holds 18 lakh shares or a 1.03% stake.
Apart from that, Sunil Singhania has taken a stake in the company via the Abakkus Diversified fund.
Meanwhile, some other fund names that have taken a stake in this company include Quant Mutual Fund, Motilal Oswal Multicap Fund, Singularity Equity Fund, Nuvama Multi Asset and LIC MF.
Interestingly, this is Sunil Singhania’s second stock in the water management industry. He already holds some stake in one of the biggest names in the industry – EMS Ltd. But, he could have swapped the stock for this newly listed one in the most recent quarter.
Strong Order Book
The company has so far developed 28 wastewater treatment plants and water supply and sanitation projects across India. This includes 22 projects, spread across Gujarat, Rajasthan, Punjab, Haryana, Uttar Pradesh, Uttarakhand, and Chhattisgarh.
Of these 28 projects, seven were executed in collaboration with JV partners.
As of June 2024, the company had a strong order book in excess of ₹ ₹1,900 crore.
It received more orders worth ₹270 crore in July 2025.
Since the company relies on government orders, investors should be wary of any change or modification in government policy because that could adversely impact its business.
Nevertheless, the company has witnessed solid growth in the last four years, and this was due to its robust order book all these years.
For this financial year (FY25), the company has projected its annual revenues at ₹800 crore.
What next?
Going forward, the company’s continuous expansion in new key areas is expected to drive growth. The company recently forayed into Karnataka and Jharkhand.
In a recent interview, the company’s management said that they’ve expanded into eight new states and the company plans to expand footprint in new states in the second half.
Also, Enviro Infra’s business does well in the second half of the financial year.
The Indian government’s ambitious initiatives such as Jal Jeevan Mission, Mission Amrut, the Namami Gange Programme, and Swajal, present significant opportunities for Enviro Infra.
The government has allocated significant funds for water treatment and infrastructure projects, with the market for water and wastewater treatment projected to grow from $1.3 billion in 2020 to $2.1 billion in 2025.
Opportunities in this sector include seawater treatment for desalination projects, zero liquid discharge for industries, and ultra-pure water for the semiconductor industry.
In the long term, emerging themes such as semiconductors and green hydrogen are also expected to create even more significant opportunities for water treatment companies.
With the increasing demand for pure water, it will be interesting to watch how this newly listed company will pioneer India’s sustainable water future.
Enviro Infra vs EMS vs Ion Exchange
Here’s a table comparing Enviro Infra with its listed peers –
While the industry price-to-earnings (P/E) stood at 41.2, the industry price-to-book (P/B) ratio stood at 5.2.
Enviro Infra touched a 52-week high of ₹276 on 4 December 2024 and a 52-week low of ₹205 on 29 November 2024.
For more information, check out Enviro Infra’s financial factsheet.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
