Concord Enviro Systems Limited

Utilities — Utilities - Regulated Water · NSE

₹257.15−₹0.30 (−0.12%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Concord Enviro Systems Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Concord Enviro Systems Limited engages in providing water and wastewater treatment, and reuse solutions in India and internationally.

IndustryUtilities - Regulated Water

SectorUtilities

Annual revenue₹556 Cr

How does it make money?

Turns over ₹556 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation.

EBITDA margin11.2%

Net margin3.6%

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NTPC LTDP/E 11.0x · ROE 13.7%

POWER GRID CORP. LTD.P/E 14.6x · ROE 15.8%

TATA POWER CO LTDP/E 29.3x · ROE 9.8%

ADANI POWER LTDP/E 26.5x · ROE 21.9%

What is its competitive advantage?Little sign of one

Returns on capital of 7.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE7.3%

ROE3.5%

Peer median ROE15.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +63% while net margin moved +121% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+63%

Margin effect+121%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.5% is weak

Quality vs. Valuation

Company Quality

46/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

44/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.93x

EV/EBITDA

10.3x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 16.5% to 11.2% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 149% against revenue growth of 63% — customers are taking longer to pay.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.2 points, from 16.5% to 11.2%.
🔴Receivables growing faster than salesFinancial
Receivables up 149% against revenue up 63% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 4.6x to 2.4x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 16.5% to 11.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 149% against revenue up 63%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.7% CAGR
Latest reported year was -16.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹44 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 2 neutral · 7 weak

Market Cap

₹532 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.93x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-2.24

Loss-making

Negative earnings per share — the business is losing money

ROE

3.5%

Weak

Weak capital efficiency

ROCE

7.3%

Weak

Low return on total capital employed

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

-16.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-61.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹44 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹257.15

Operating Margin

-23.5%

Weak

Thin margins leave little room for error

Net Margin

-0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.00

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

262.6 / 266.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹341 Cr	₹495 Cr	₹592 Cr	₹556 Cr	+17.7%
EBITDA	₹56 Cr	₹141 Cr	₹101 Cr	₹63 Cr	+3.7%
EBITDA Margin	16.5%	28.6%	17.1%	11.2%	—
PAT (Net Profit)	₹5 Cr	₹41 Cr	₹51 Cr	₹20 Cr	+53.3%
EPS	₹2.65	₹20.02	₹27.29	₹9.55	+53.3%
ROE	2.0%	12.8%	9.6%	3.5%	—
ROCE	7.3%	31.8%	14.7%	7.3%	—
Total Debt	₹170 Cr	₹159 Cr	₹134 Cr	₹167 Cr	-0.6%
Free Cash Flow	₹112 Cr	-₹45 Cr	-₹21 Cr	-₹44 Cr	—

🟢 Revenue has grown at 17.7% a year over 3 years.

🟢 EBITDA has grown at 3.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.5% to 11.2% over 3 years (-5.2 pts).

🟢 PAT (Net Profit) has grown at 53.3% a year over 3 years.

🟢 EPS has grown at 53.3% a year over 3 years.

🟢 ROE has risen from 2.0% to 3.5% over 3 years (+1.5 pts).

🟡 ROCE has held roughly flat at 7.3% over 3 years.

🟡 Total Debt has been broadly flat over 3 years (-0.6% a year).

🔴 Free Cash Flow has turned negative, from ₹112 Cr to -₹44 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹952 Cr

Total Liabilities

₹380 Cr

Total Debt

₹167 Cr

Cash & Equivalents

₹53 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

6.9%

Insider Holding

67.5%

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

2 mixed4 general

Concord Enviro Systems (NSEI:CEWATER) - Stock Analysis

Simply Wall Street, 14 Oct

Concord Enviro Systems Share Price Target 2026: Rs 320 Analyst Forecast

Univest, 17 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Concord Enviro Q1FY27 loss widens to ₹175.69 cr; supply chain hit

scanx.trade, 07 Aug

Concord Enviro Systems Ltd Peer Comparison – Compare with Others

Value Research, 31 Aug

CONCORD ENVIRO SYSTEMS L Share Price

Upstox, 05 May

Concord Enviro Systems reports consolidated net loss of Rs 17.57 crore in the June 2026 quarter

Business Standard, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-16.6%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak6.2/20

🟡Financial HealthAdequate10.9/20

🟢GrowthStrong14.9/20

🔴ProfitabilityWeak2.6/15

🟡ValuationFair7.1/15

🔴RiskHigh2.5/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 13% a year17.7% CAGR
✓EBITDA margin holds above 9%11.2%
✗Debt / EBITDA stays below 2x2.7x
✗Free cash flow remains positive-₹44 Cr
✗Interest cover stays above 3x2.4x