- Our view
- Unrated
- Price then
- INR 249.70/-
- Market cap then
- INR 4,382.98 Cr.
Turnkey EPC and O&M provider in water and wastewater treatment, serving municipal, government and industrial clients. Its EPC order book was INR 1,687 Cr. and O&M order book INR 738 Cr. as on 31-Dec’24.
Profile Highlights
- Project coverage: EPC projects were expected to execute over 18 months to 24 months; O&M contracts range from 1 to 15 years.
- Geographic presence: The company had a presence across 11 states and was expanding in East and South India.
Key Risks
- Receivables and debt: The profile flags high debtors from retention money and rising Debt/Equity, shown at 1.05x in H1FY25 versus 0.80x in FY24.
- Margins and new orders: Sustaining margins on government tender projects and converting fresh orders are identified as monitorables.
Standard disclosures
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- Nature of financial interest in subject company, if any –Nil
- We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of Research Report – No
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Regulatory disclosures
Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).
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Rating rationale
Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.
- Buy:> 15%
- Hold: -5% to 15%
- Reduce: -15% to -5%
- Sell: <-15%