Leading waste management stock surged by 5 percent after the company secured a Rs.10.35 crore contract to set up a solid waste processing plant under the Swachh Bharat Mission. This new order highlights the company’s growing presence in the waste management sector and has positively influenced investor sentiment.
During Wednesday’s trading session, the shares of Urban Enviro Waste Management Ltd reached an intraday high of Rs.154.50 per share, hitting the 5 percent upper circuit limit from the previous close of Rs.147.15 per share. The shares have retreated from the peak and are trading at Rs.150.00 apiece.
Contract Specifications
Urban Enviro Waste Management Limited has been awarded a major work order by Savarkundla Municipality in Amreli district, Gujarat. The project involves developing a Solid Waste Processing Plant for dry and wet waste generated by the local urban bodies under the Swachh Bharat Mission.
The contract is on a Design, Build, Operate, and Transfer (DBOT) basis for seven years, with a total value of Rs.10.35 crores. This marks the company’s first order for establishing and managing a solid waste processing facility.
This project represents a significant milestone in Urban Enviro’s business expansion into processing infrastructure. It will also support environmental sustainability and align with the goals of the Swachh Bharat Mission.
Urban Enviro Waste Management offers a comprehensive range of services including manpower supply, door-to-door collection, road sweeping, and efficient waste transportation using trained personnel and specialized vehicles. The company ensures seamless waste handling from collection to maintenance, promoting cleanliness and public health.
Its capabilities extend to advanced processing methods like recycling, composting, and segregation, along with eco-friendly biomining of legacy waste for material recovery. These services support sustainability and align with modern environmental standards.
Financial Performance
According to its latest financial results, Urban Enviro Waste Management reported a consolidated revenue of Rs.69 crores in H2 FY25, marking a growth of 23.21 percent from Rs.56 crores in H2 FY24 but a decline of 4.17 percent from Rs.72 crores in H1 FY25.
The company’s net profit remained stable at Rs.3 crores in H2 FY25, showing no change from H2 FY24. However, it reflected a sharp decline of 62.5 percent compared to the Rs.8 crores reported in H1 FY25.
The company has a Return on Capital Employed (ROCE) of 29.71 percent and a Return on Equity (ROE) of 32.17 percent. Its Price-to-Earnings (P/E) ratio stands at 12.42, lower than the industry average of 41.59. Furthermore, the company maintains a current ratio of 2.09, a debt-to-equity ratio of 0.85, and an Earnings Per Share (EPS) of Rs.11.85.
Written by – Siddesh S Raskar
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