FELIX INDUSTRIES LTD.

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.

Felix Industries Key Financials

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

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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%