Synopsis:
Effwa Infra & Research Ltd secured an EPC contract worth over Rs. 150 crores for the supply and commissioning of water treatment and ZLD plant for SAIL, to be completed in 18 months.

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This Waste Management Stock, engaged in engineering, consultancy, procurement, construction, and integrated project management services, specializing in environmental pollution control, jumped 7 percent after receiving an EPC contract worth Rs. 150 crore from Hutni Projekt FM (India) Pvt. Ltd.

With a market capitalization of Rs. 574.86 crores, the share of Effwa Infra & Research Limited has reached an intraday high of Rs. 252.80 per equity share, rising nearly 7.44 percent from its previous day’s close price of Rs. 235.30. Since then, the stock has retreated and is currently trading at Rs. 248 per equity share. 

Reason Behind the Surge

Effwa Infra & Research Limited has announced that it has secured a major EPC contract valued at over Rs. 150 crores from Hutni Projekt FM (India) Pvt. Ltd. The project involves the supply, installation, and commissioning of a BOD Plant, Raw Water Treatment Plant, and Zero Liquid Discharge (ZLD) Plant for SAIL. 

The contract will be completed within 18 months, marking a significant addition to the company’s ongoing projects. This order is expected to boost growth, enhance market presence, and strengthen Effwa’s technical and project execution capabilities.

Company Growth

Effwa Infra & Research Limited (EIRL) was established in 2014 and is based in Thane, Maharashtra. The company is a leading engineering company specializing in sustainable environmental solutions. 

The company focuses on solving complex environmental issues faced by industries, public sector undertakings, and municipal authorities both in India and internationally. 

The company is engaged in providing turnkey solutions in environmental pollution control. Its core services include effluent and sewage treatment and recycling, water treatment and distribution, restoration of water bodies, hazardous waste incineration, and solid waste management. 

Recent quarter results

Coming into financial highlights, Effwa Infra & Research Limited’s revenue has increased from Rs. 112 crore in H2 FY24 to Rs. 124 crore in H2 FY25, which has grown by 10.71 percent. The net profit has also grown by 15.38 percent from Rs. 13 crore in H2 FY24 to Rs. 15 crore in H2 FY25.

Effwa Infra & Research Limited’s revenue and net profit have grown at a CAGR of 21.17 percent and 71 percent, respectively, over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 33.9 percent and 30.4 percent, respectively. Effwa Infra & Research Limited has an earnings per share (EPS) of Rs. 8.69, and its debt-to-equity ratio is 0.31x.

Written By – Nikhil Naik

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