- Price then
- INR 197.20/-
- Market cap then
- INR 269 Cr.
Felix Industries works on water and effluent treatment projects through EPC, O&M and BOOT contracts, and has begun operations at its Oman facility. Minerva Capital Research Solutions highlights contract-led revenue visibility, including a potential recurring revenue schedule of INR 41 Cr. in FY26; the update does not state a rating or target price.
About Felix Industries
Felix Industries is active in water and effluent treatment, with reported work spanning EPC, O&M and BOOT projects. Its listed orders cover ETP, ZLD, WTP, RO and water-injection facilities. The company also commenced operations at Felix Industries LLC in Oman on 17-Jan’25; the report lists oil processing, plastic processing, chemical waste incineration, wastewater treatment, evaporation and effluent recycling capacities at the facility.
Investment Rationale
- Contract pipeline: The update lists orders and an executed term sheet received across FY25 and FY26, with execution periods ranging from months to 10 years.
- Large Ratani Global term sheet: The INR 110 Cr. term sheet covers O&M for 550 KLD ZLD and 440 KLD WTP, following installation during 2025 to 2026; O&M is scheduled for 5 years from FY27.
- Long-duration BOOT work: The HOCCO order is valued at INR 63 Cr. and covers a 500 KLD ZLD and 500 KLD WTP project over 10 years. The report notes that the order was received on 18-May’24, completed in Jan’25 and followed by the start of O&M.
- Potential recurring revenue: The chart shows potential recurring revenue of INR 41 Cr. in FY26, INR 30 Cr. in FY27 and FY28, and INR 28 Cr. in FY29 and FY30.
- Oman operations: The Oman facility’s listed capacities include oil processing of 100 TPD, wastewater treatment of 300 TPD and an effluent treatment plant effluent recycling system of 150 TPD.
Order Book and Revenue Visibility
The update highlights multiple contracts with scheduled execution or O&M periods. The ONGC contract orders shown are for ETP, water-injection and O&M work. The report identifies the ONGC orders marked with ® as orders received by Rivita Solutions Pvt. Ltd., a subsidiary in which Felix Industries has a 51% holding; their reflection in consolidated performance is subject to accounting norms based on the holding percentage.
| Particulars | FY26 | FY27 | FY28 | FY29 | FY30 |
|---|---|---|---|---|---|
| Potential Recurring Revenue | 41 | 30 | 30 | 28 | 28 |
Felix Industries Key Financials
| Particulars | FY22 | FY23 | FY24 | 9M-FY25 |
|---|---|---|---|---|
| Revenue | 12.4 | 19.4 | 33.9 | 23.8 |
| Gross Margin | 6.4 | 10.3 | 21.4 | 17.6 |
| EBITDA | 1.8 | 2.1 | 5.6 | 4.6 |
| Other Income | 0.0 | 0.1 | 1.9 | 3.6 |
| PAT | 0.8 | 1.2 | 5.0 | 5.3 |
| Debt (Short+Long) | 4.1 | 4.4 | 2.9 | 8.0* |
| Equity | 7.6 | 16.2 | 65.9 | 80.6* |
| Debt/Equity | 0.54x | 0.27x | 0.04x | 0.10x* |
| NWC | 6 | 9 | 20 | 24* |
| NWC (days) | 162 | 164 | 213 | 270* |
NWC includes Inventory, Receivables & Payables; & NWC days is computed as % of rev. | *As on Sep’24
Key Risks
- Working capital: NWC rose to 24* and NWC days to 270* in 9M-FY25, compared with 20 and 213 in FY24.
- Subsidiary order recognition: The report states that actual reflection of Rivita Solutions Pvt. Ltd.’s orders in Felix Industries’ consolidated performance depends on accounting norms based on the 51% holding.
- Contract execution periods: The listed projects have different completion and operating timelines, including installation through 2025 to 2026 and multi-year O&M or BOOT periods.
Our View
The update focuses on revenue visibility from a mix of treatment contracts and longer-term BOOT and O&M work, alongside the start of operations in Oman. Investors should note the increase in working-capital days and the stated accounting treatment for subsidiary orders. The update provides no recommendation or target price.
Standard disclosures
- Research Analyst has served as an officer, director or employee of subject company(ies): No
- We or our associates have received compensation from the subject company(ies) in the past 12 months: No
- We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
- We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months –No
- We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report –No
- We or our associates or Research Analyst or his/her relative's financial interest in the subject company(ies)- No
- 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
- Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report-No.
- We or our Associates or Research Analyst are engaged in market making of subject company – No
- By referring to any particular sector, Minerva Capital Research Solutions does not provide any promise or assurance of favorable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing. Such representations are not indicative of future results.
- There are either no material conflict of interests or all existing and potential conflict of interest are disclosed herein.
Regulatory disclosures
Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).
Registration granted by SEBI and certification from NISM in no way promise or guarantee that the research recommendation will provide any assured, minimum or risk-free return to the investors.
The research report serves as general information and does not account for individual investment goals, financial situations, or needs. Minerva Capital Research Solutions strives to provide reliable and comprehensive information, sourced from what are believed to be trustworthy channels. However, this information has not been independently verified by Minerva Capital Research Solutions or its analysts, and no guarantees are made regarding its accuracy or completeness. The opinions expressed in this report reflect the views of the research analyst at the time of publication and may change over time. Minerva Capital Research Solutions and its affiliates as on date of publication of this report may or may not hold any positions in the securities discussed. The views presented are general and do not consider individual risk tolerance or investment objectives; therefore, readers should seek independent professional advice before making investment decisions. Minerva Capital Research Solutions does not guarantee a favorable outlook for any specific industry or sector and urges investors to consider all relevant risk factors, including their financial circumstances, before investing. The analyst certifies that their views accurately represent their personal opinions on the companies discussed and that no part of their compensation is tied to specific recommendations made in this report. This material should not be interpreted as an offer or solicitation to buy or sell securities in jurisdictions where such offers would be illegal. Consequently, brokerage and investment services described herein are not available to Canadian or U.S. persons. Distribution outside India requires prior written consent. This Research Report assumes that the recipient will assume all risks associated with its contents. If there are any disagreements or dissatisfaction with this report or its disclaimer, the only recourse is to cease using it. Minerva Capital Research Solutions and its affiliates will not be liable for any direct or indirect losses resulting from the use of this report. Recipients are required to adhere to these restrictions. The material is for the personal use of authorized individuals and does not constitute a solicitation or offer to buy or sell any securities in jurisdictions where such actions would be illegal.
For any queries or grievances: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in | Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In
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%