According to a report by Keynote Capital, the brokerage has initiated coverage on Enviro Infra Engineers Ltd (EIEL) with a Buy rating and a target price of ₹309. The current market price stands at ₹200.15, indicating a potential upside of approximately 52.3%. The valuation is based on 17x P/E on FY28E earnings.
As reported by Keynote Capital, Enviro Infra Engineers Ltd was incorporated in 2009 and operates as a leading Indian water and wastewater infrastructure company. The company provides turnkey design, construction and operations & maintenance (O&M) solutions for government and government-backed clients. EIEL operates across Engineering, Procurement and Construction (EPC), Hybrid Annuity Model (HAM) and O&M project models, with capabilities spanning Sewage Treatment Plants (STPs), Sewerage Schemes (SS), Common Effluent Treatment Plants (CETPs), Water Treatment Plants (WTPs), pumping stations and pipeline networks.
According to Keynote Capital's analysis, the company is expected to deliver approximately 25% revenue CAGR over the FY25-28E period. The brokerage projects that EBITDA margins will moderate modestly to about 24% by FY28E. This growth is supported by increased government spending and participation in CETPs, ZLD and HAM projects.
As noted in the Keynote Capital report, EIEL's limited exposure to Jal Jeevan Mission (JJM) schemes and participation across multiple government programmes have helped the company navigate industry-wide challenges. The brokerage highlighted that with its growing presence in India's water and wastewater treatment sector and a diversified order-book, EIEL is well positioned for sustainable growth.
