Enviro Infra Engineers Limited

Industrials — Engineering & Construction · NSE

₹187.50−₹2.47 (−1.30%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Enviro Infra Engineers Limited engages in the design, construction, operation, and maintenance of water and wastewater treatment plants (WWTPs) and water supply scheme projects (WSSPs) for government authorities/bodies in India.

IndustryEngineering & Construction

SectorIndustrials

Employees1,844

Annual revenue₹1,118 Cr

How does it make money?

Turns over ₹1,118 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation. Each of its 1,844 employees supports ₹60.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin27.7%

Net margin16.4%

Revenue / employee₹60.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Some evidence

ROCE of 18.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.4%

ROE14.8%

Peer median ROE14.1%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 32.8% and earnings to grow about 28.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+32.8%

Est. earnings growth+28.0%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +231% while net margin moved +1% 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+231%

Margin effect+1%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

70/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.2x

2Y Median

19.0x

25 monthly readings · mean 25.2x · range 11.9x–50.5x

Sector Median

30.1x

median of 3 sector peers

🟡Currently trading close to its 2y median of 19.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 40% below the peer median of 30.1x.

vs. its own history

Fair

19.0x median over 25 months · -4%

vs. sector peers

Cheap

30.1x median of 3 peers · -40%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.2x

P/B

2.67x

EV/EBITDA

11.8x

PEG

0.37

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 24.5% to 27.7% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 554% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 43.5% to 14.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 42.8% to 18.4% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 554% over 3 years, from ₹65 Cr to ₹422 Cr.
🔴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.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 24.5% to 27.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 40% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Returns on shareholder capital are falling
ROE has dropped from 43.5% to 14.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 37% a year✓ 49.0% CAGR
Latest reported year was 49.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 27.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹245 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹3,291 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.2x

Fair

Fairly valued against the generic band

P/B Ratio

2.67x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.31

Profitable

Profitable on a per-share basis

ROE

14.8%

Moderate

Moderate capital efficiency

ROCE

18.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

49.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-5.0%

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

-₹245 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹187.5

P/E (Forward)

9.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

18.6%

Good

Healthy core-business profitability

Net Margin

14.3%

Good

Strong bottom-line conversion

Current Ratio

2.56

Comfortable

Healthy short-term liquidity

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

190.3 / 196.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹338 Cr	₹729 Cr	₹1,055 Cr	₹1,118 Cr	+49.0%
EBITDA	₹83 Cr	₹171 Cr	₹285 Cr	₹310 Cr	+55.3%
EBITDA Margin	24.5%	23.5%	27.1%	27.7%	—
PAT (Net Profit)	₹55 Cr	₹108 Cr	₹176 Cr	₹183 Cr	+49.3%
EPS	₹3.13	₹6.18	₹11.76	₹10.41	+49.2%
ROE	43.5%	37.1%	17.7%	14.8%	—
ROCE	42.8%	41.4%	24.6%	18.4%	—
Total Debt	₹65 Cr	₹234 Cr	₹234 Cr	₹422 Cr	+87.0%
Free Cash Flow	₹90 Cr	-₹136 Cr	-₹105 Cr	-₹245 Cr	—

🟢 Revenue has grown at 49.0% a year over 3 years.

🟢 EBITDA has grown at 55.3% a year over 3 years.

🟢 EBITDA Margin has risen from 24.5% to 27.7% over 3 years (+3.2 pts).

🟢 PAT (Net Profit) has grown at 49.3% a year over 3 years.

🟢 EPS has grown at 49.2% a year over 3 years.

🔴 ROE has fallen from 43.5% to 14.8% over 3 years (-28.6 pts).

🔴 ROCE has fallen from 42.8% to 18.4% over 3 years (-24.5 pts).

🔴 Total Debt has grown at 87.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹90 Cr to -₹245 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,042 Cr

Total Liabilities

₹805 Cr

Total Debt

₹422 Cr

Cash & Equivalents

₹52 Cr

Operating Cash Flow

-₹63 Cr

Capex

-₹182 Cr

Shareholding (proxy)

Institutional Holding

0.6%

Insider Holding

70.2%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹310

+65.3% vs CMP

Target Range

₹310 – ₹310

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

2 positive2 mixed2 general

Enviro Infra Engineers secures ₹256.92 crore orders for Varanasi STPs

scanx.trade, 18 Oct

Enviro Infra Share Price Tumbles Ahead Of Q2 Earnings Announcement

NDTV Profit, 17 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Enviro Infra Subsidiary Wins ₹228 Cr Wind EPC Project

HDFC Sky, 15 OctOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Enviro Infra Engineers Limited Beat Revenue Forecasts By 12%: Here's What Analysts Are Forecasting Next

Simply Wall Street, 16 AugAnalyst view

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

Enviro Infra Engineers Subsidiary Receives LOI For ₹228 Crore 100 MW Wind Power Project

Sahi, 15 OctOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Stock Stories: Diving into the Green Growth of Enviro Infra Engineers Ltd

MarketSmith India, 20 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.1/20

🟢Financial HealthStrong13/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate8.2/15

🟡ValuationFair9.3/15

🔴RiskHigh2.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 37% a year49.0% CAGR
✓EBITDA margin holds above 26%27.7%
✗Free cash flow remains positive-₹245 Cr
✓Debt / EBITDA stays below 2x1.4x
✓ROCE stays above 15%18.4%