During Tuesday’s trading session, the shares of a company in the business of EPC, consultancy, and integrated project management services in Environmental Pollution Control hit a 10 percent upper circuit following a bulk deal via NSE.
Price Movement
With a market capitalisation of Rs. 464.3 crores, the shares of Effwa Infra & Research Limited hit a 10 percent upper circuit at Rs. 200.6 on NSE, as compared to its previous closing price of Rs. 182.4.
What’s the News
As per the latest bulk deal available with the NSE, investor Sandeep Singh bought 1,25,200 equity shares in Effwa Infra & Research—representing a 0.54 percent stake—through an open market transaction valued at around Rs. 2.26 crore, at an average price of Rs. 180.49 per share.
Management Outlook
Ongoing projects, including BPCL, KCL, and IOCL, are expected to drive significant growth in revenue and profitability. With an enhanced order pipeline exceeding Rs. 1,800 crore and a 30 percent technical qualification success rate, the company is well-positioned to secure a significant share of upcoming opportunities, further boosting its revenue and profitability.
In line with its strategic growth plan, the management committee has initiated a $1.5 million export project in Tanzania, marking the beginning of its increased focus on international markets. Several additional export projects are currently in the pipeline.
H2 FY25 is expected to mirror the robust performance seen in H2 FY24. Although revenue generation tends to be cyclical due to the nature of the EPC business, improved working capital has enhanced the company’s ability to manage multiple projects concurrently. This is expected to streamline execution timelines and result in a more consistent and predictable revenue flow.
Effwa remains committed to its asset-light model, focusing on prudent cash and debt management to maintain a net cash-positive position and sustain healthy EBITDA margins in the 12–15 percent range.
Financial Performance
Effwa Infra reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 85 percent, from Rs. 33 crores in H1 FY24 to Rs. 61 crores in H1 FY25.
Similarly, the company’s net profit increased during the same period from Rs. 1 crore to Rs. 5 crores, representing an impressive growth of nearly 400 percent YoY.
About the Company
Effwa Infra & Research Limited is an engineering powerhouse engaged in providing advanced environmental solutions to various Industries and Municipal Authorities worldwide.
The company have a presence in fields of effluent treatment and recycling, sewage treatment and recycling, water treatment and distribution, restoration of water bodies, hazardous waste incineration, and more.
Written by Shivani Singh
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