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The stock’s decline follows a strong 26% rally over the past five trading sessions.
Despite today’s decline, the stock has surged a remarkable 156% since its IPO price.
Shares of Enviro Infra Engineers fell sharply by 10% to Rs 342.5 in morning trade on December 18, as investors await the company’s second-quarter earnings, scheduled to be announced later today. The stock’s decline follows a strong 26% rally over the past five trading sessions.
As of 11:20 am, shares of Enviro Infra Engineers were trading at Rs 346, reflecting a 9% drop from the previous close on the NSE. Despite today’s decline, the stock has surged a remarkable 156% since its IPO price.
Enviro Infra Engineers, which made its stock market debut on November 29, has seen a significant rise since listing. The company’s shares were offered at Rs 148 per share in its Rs 650-crore IPO, which was met with an overwhelming response, being subscribed 89.90 times.
The IPO, open for subscription between November 22 and November 26, received an overwhelming demand, with bids totaling 2.76 billion shares for the 3.07 million shares offered. The stock’s listing price of Rs 220 marked a 48.64% premium over its issue price of Rs 148.
Investor Backing and Analyst Outlook
Enviro Infra Engineers enjoys support from prominent investors, including ace investor Mukul Agarwal, who holds over 1% of the company, and Sunil Singhania, who invested through his Abakkus Diversified Alpha Fund.
Despite the recent decline, analysts maintain a “long-term hold” recommendation on the stock, citing the company’s solid fundamentals and promising growth potential in the water treatment sector.
Company Profile and Market Position
Enviro Infra Engineers specializes in the design, construction, operation, and maintenance of water and wastewater treatment plants, as well as water supply projects for government bodies. With 28 water and wastewater treatment projects completed across India by June 30, 2024, the company has an impressive order book valued at Rs 1,906.28 crore.
The company’s growth is closely tied to government-funded water and wastewater treatment projects, primarily from Central and State Governments. It faces competition from industry players like VA Tech Wabag, Ion Exchange India, EMS, and Vishnu Prakash R Punglia.
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