Systematix Initiates Coverage on Enviro Infra Engineers with ‘BUY’ Rating, Sees 83% Upside Potential

Systematix Initiates Coverage on Enviro Infra Engineers with ‘BUY’ Rating, Sees 83% Upside Potential

New Delhi, Jan 15:  Systematix Institutional Equities has released a research report on India’s Water Supply & Management sector, initiating coverage on Enviro Infra Engineers Limited (EIEL) with a ‘BUY’ rating and a target price of Rs 346, implying an upside potential of 83% from the current market price of approximately Rs 189.

According to the report, Enviro Infra Engineers is well-positioned as a leading EPC player in India’s water and wastewater treatment space, supported by strong execution capabilities across both municipal and industrial projects.

Systematix highlighted Enviro’s robust financial performance over the last five years, with revenue and EBITDA CAGR of 71% and 107%, respectively. Looking ahead, the company’s management has guided for 35–40% revenue CAGR over the next 3–4 years, backed by a healthy order book of Rs 18.8 billion, equivalent to approximately 1.8x FY25 revenue.

The report further notes that Enviro Infra Engineers has a strong bidding pipeline of around Rs 80 billion, with a historical success rate of nearly 40%, providing strong multi-year revenue visibility.

On profitability, Systematix expects EBITDA margins to remain healthy at 22–24% over the coming years, driven by operating leverage and a favourable project mix.

Overall, the research forecasts revenue, EBITDA and PAT CAGR of 32%, 30% and 32%, respectively, over FY25–FY28E, reinforcing Enviro Infra Engineers’ strong growth outlook within India’s expanding water infrastructure landscape.