Urban Enviro Waste Management Limited

Sector n/a · NSE

₹369.25+₹17.30 (+4.92%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. 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

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

How does it make money?

Turns over ₹182 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation.

EBITDA margin17.8%

Net margin8.2%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 32.4%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE32.4%

ROE31.8%

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 +365% while net margin moved +48% 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+365%

Margin effect+48%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

60/ 100

Fair

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

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

11.5x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from 20.8% to 32.4%.
High return on capital employed
ROCE of 32.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 21.1% to 17.8% over 3 years.
Debt is rising
Total debt is up 105% 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 38.6% to 31.8% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 628% against revenue growth of 365% — customers are taking longer to pay.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 105% over 3 years, from ₹27 Cr to ₹55 Cr.
🔴Free cash flow negative for 4 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.
🔴Receivables growing faster than salesFinancial
Receivables up 628% against revenue up 365% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 3.3 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 32.4% 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.
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 21.1% to 17.8%. 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 628% against revenue up 365%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 38.6% to 31.8%. 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.
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.

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

1Revenue growth stays above 50% a year✓ 66.9% CAGR
Latest reported year was 29.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 29%✓ 32.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹320 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹17.19

Profitable

Profitable on a per-share basis

ROE

31.8%

Strong

Strong capital efficiency

ROCE

32.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.18x

Moderate

Moderate leverage

Revenue Growth (YoY)

29.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

45.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹369.25

Net Margin

8.2%

Average

Average bottom-line conversion

Current Ratio

1.77

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

121.2 / 129.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

73.8

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹39 Cr	₹102 Cr	₹141 Cr	₹182 Cr	+66.9%
EBITDA	₹8 Cr	₹18 Cr	₹25 Cr	₹32 Cr	+57.7%
EBITDA Margin	21.1%	17.9%	17.8%	17.8%	—
PAT (Net Profit)	₹2 Cr	₹7 Cr	₹10 Cr	₹15 Cr	+90.4%
EPS	₹2.49	₹8.15	₹11.85	₹17.19	+90.4%
ROE	38.6%	32.6%	32.2%	31.8%	—
ROCE	20.8%	28.1%	29.8%	32.4%	—
Total Debt	₹27 Cr	₹30 Cr	₹41 Cr	₹55 Cr	+27.0%
Free Cash Flow	-₹6 Cr	-₹7 Cr	-₹1 Cr	-₹4 Cr	—

🟢 Revenue has grown at 66.9% a year over 3 years.

🟢 EBITDA has grown at 57.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.1% to 17.8% over 3 years (-3.3 pts).

🟢 PAT (Net Profit) has grown at 90.4% a year over 3 years.

🟢 EPS has grown at 90.4% a year over 3 years.

🔴 ROE has fallen from 38.6% to 31.8% over 3 years (-6.8 pts).

🟢 ROCE has risen from 20.8% to 32.4% over 3 years (+11.6 pts).

🔴 Total Debt has grown at 27.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹134 Cr

Total Liabilities

₹88 Cr

Total Debt

₹55 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹13 Cr

Recent News

1 mixed5 general

Urban Enviro Waste Bags ₹42.26 Crore Orders

HDFC Sky, 12 May

Here's Why We Think Urban Enviro Waste Management (NSE:URBAN) Is Well Worth Watching

Simply Wall Street, 01 Sept

Urban Enviro Waste Management Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

Urban Enviro Waste Management Share Price Rises 8.42% Today

Univest, 07 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

This SME Stock Jumps Over 9% In Trade Today. Here's Why

NDTV Profit, 07 Sept

Urban Enviro Waste Management Secures 33 Orders Across Maharashtra, Gujarat, and Rajasthan in FY 2025-26 and FY 2026-27

scanx.trade, 11 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong15.4/20

🟡Financial HealthAdequate10.9/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate9.3/15

🟡ValuationFair7.5/15

🔴RiskHigh2.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 50% a year66.9% CAGR
✓EBITDA margin holds above 16%17.8%
✗Free cash flow remains positive-₹4 Cr
✓Debt / EBITDA stays below 2x1.7x
✓ROCE stays above 29%32.4%