Backed by Sunil Singhania, this Water Infra Stock Could be the Biggest Story of 2025

On the surface, this newly listed water management stock may look like the biggest story to watch out for in 2025.

Why, you ask?

Well, 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.

Next, 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

If you haven't guessed it, the company in question is 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's 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.

Apart from that, it also holds over 74% stake in one of its subsidiaries - EIEL Mathura Infra Engineers. Currently, this company is construction a 60 MLD sewage treatment plant and sewerage scheme in Mathura. The project also includes a solar power plant installation.

IPO Details

Shares of Enviro Infra Engineers made a strong start on Friday last week as it was listed at Rs 220, a premium of almost 50% over its issue price of Rs 148.

The company raised Rs 6.5 bn through the IPO and was listed on 29 November 2024.

Out of the total size, the fresh issue size was Rs 5.7 bn 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 also 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
• 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, 7 were executed in collaboration with JV partners.

As of June 2024, the company had a strong order book in excess of Rs 19 billion (bn).

It received more orders worth Rs 2.7 bn 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 4 years, and this was due to its robust order book all these years.

Financial Snapshot

Rs m, consolidated	FY20	FY21	FY22	FY23	FY24
Net Sales	1,078	1,241	2,235	3,381	7,289
Growth (%)	-	15%	80%	51%	116%
Operating Profit	115	166	521	852	1,756
OPM (%)	11%	13%	23%	25%	24%
Net Profit	52	86	346	550	1,084
Net Margin (%)	5%	7%	15%	16%	15%
ROE (%)	18.1	26.2	63.6	55.9	50.9
ROCE (%)	18.8	25.2	64.1	59.1	47.3
Dividend (Rs)	0	0	0	0	0
Debt to Equity (x)	0.9	0.8	0.3	0.5	0.8

Source: Equitymaster

For this financial year (FY25), the company has projected its annual revenues at Rs 8 bn.

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 8 new states and the company plans to expand footprint in new state 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 US$ 1.3 bn in 2020 to US$ 2.1 bn 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 -

Comparative Analysis

Company	Enviro Infra	EMS	Ion Exchange	SEPC
ROE (%)	50.9	23.7	21.1	1.9
ROCE (%)	47.3	30.3	27.9	4.7
Latest EPS (Rs)	6.2	30.9	14.7	0.1
TTM PE (x)	41.9	26.7	47.2	174.3
TTM Price to book (x)	4.9	5.2	9.3	2.7
Dividend yield (%)	0	0.2	0.2	0
Industry PE	41.2
Industry PB	5.2

Source: Equitymaster

Enviro Infra touched a 52-week high of Rs 276 on 4 December 2024 and a 52-week low of Rs 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. Learn more about our recommendation services here...