Synopsis:
Urban Enviro Waste Management jumped sharply after the company secured an order worth Rs 55.20 crore from the Akola Municipal Corporation in the state of Maharashtra.
This Waste Management stock is in focus after securing an order from a Maharashtra-based municipal corporation. In this article, we will delve into the details of the award won by the company.
With a market capitalization of Rs 137 crore, the shares of Urban Enviro Waste Management made a day high of Rs 162 per share, up by 6 percent from its previous day closing price of Rs 153. In the last one year, the stock has corrected by over 35 percent.
About the order
Urban Enviro Waste Management, through a stock exchange filing, announced that the company has secured a work order valued at Rs 55.20 crore from the Akola Municipal Corporation in Maharashtra.
This contract entails the collection and transportation of both dry and wet segregated municipal solid waste produced daily from various residential, commercial, and other properties within the corporation’s jurisdiction.
Additionally, the company will handle the collection of user charges as determined by the municipal authority. The contract is set to last for five years, with work expected to kick off within a month.
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Financial Highlights & More
Urban Enviro Waste Management Limited stands out as a top provider of municipal solid waste management services. The company delivers a range of solutions, including door-to-door collection, waste segregation, transportation, treatment, recycling, and disposal across several states like Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh.
Additionally, they manage biomedical, industrial, and agricultural waste, and offer manpower support to various institutions, catering to both government and private sectors.
The company reported a revenue of Rs 141 crore in FY25, up by 38 percent from its FY24 revenue of Rs 102 crore. Regarding its profitability, the company reported a net profit growth of 45 percent to Rs 10.25 crore in FY25 from Rs 7.05 crore in FY24.
The stock delivered an ROE and ROCE of 38.35 percent and 31.71 percent respectively, and is currently trading at a low P/E of 13.58x as compared to its industry average of 24.92x.
Written by Satyajeet Mukherjee
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