Urban Enviro Waste Management Ltd Hits 5% Upper Circuit After Securing Major Gujarat Govt Order
Urban Enviro Waste Management Ltd, a key player in municipal solid waste (MSW) management services, witnessed a strong rally in its stock price after securing a significant order from the Gujarat government. The stock surged by 5% in today’s trading session, hitting the upper circuit at ₹165.1 per share.
Stock Performance and Market Reaction
The company, with a market capitalization of ₹143 Crore, has been on a strong upward trajectory. Over the past year, its stock has delivered an 18.5% return, and since its listing in June 2023, it has skyrocketed by an impressive 134%.
The recent rally was triggered by a new work order from Anjar Municipality, Gujarat, which reinforced investor confidence in the company’s expanding footprint in the waste management sector.
Major Order Secured from Gujarat Government
On March 18, 2025, Urban Enviro Waste Management Ltd announced that it had received a work order for cleaning operations in Ward No. 1 to 9 of Anjar Municipality, Gujarat. The contract spans two years and is valued at ₹7.77 Crore.
This new order further strengthens the company’s revenue pipeline and enhances its presence in Gujarat’s growing waste management sector.
Series of Work Orders Boost Business Growth
Urban Enviro Waste Management Ltd has been aggressively expanding its operations by securing multiple contracts across India. Some of the notable recent contracts include:
- Petlad Municipality, Gujarat: ₹88 Lakh order for door-to-door garbage collection and transportation.
- Anjar Municipality, Gujarat: ₹12 Lakh order for road cleaning and sweeping under the Nirmal Gujarat 2.0 grant.
The company’s ability to secure such contracts highlights its strong operational expertise and growing demand for waste management services in urban regions.
Strong Financial Performance
Urban Enviro Waste Management Ltd has demonstrated robust financial growth over the past year. In H1FY25, the company reported:
- Revenue from Operations: ₹71.9 Crore (54.6% YoY growth from ₹46.5 Crore in H1FY24)
- Net Profit: ₹7.6 Crore (90% YoY growth from ₹4 Crore in H1FY24)
The company’s high growth rate and improving profitability signal strong execution and increasing operational efficiency.
Key Financial Ratios of Urban Enviro Waste Management Ltd
| Metric | Value |
|---|---|
| Market Cap | ₹143 Cr. |
| Current Price | ₹165 |
| 52-Week High/Low | ₹348 / ₹136 |
| Stock P/E | 13.4 |
| Book Value per Share | ₹33.6 |
| Dividend Yield | 0.15% |
| Return on Capital Employed (ROCE) | 29.8% |
| Return on Equity (ROE) | 51.6% |
| Debt to Equity Ratio | 0.79 |
| Promoter Holding | 51.2% |
| Price to Book Value | 4.91 |
| Industry P/E | 23.3 |
| Intrinsic Value | ₹219 |
| Relative Strength Index (RSI) | 34.8 |
| EPS (Earnings Per Share) | ₹12.3 |
| Free Cash Flow (3 Years) | ₹-13.3 Cr. |
| Debt | ₹23.2 Cr. |
The company boasts a high ROE (51.6%) and ROCE (29.8%), indicating strong financial performance. Its P/E ratio of 13.4 is significantly lower than the industry average of 23.3, making it an attractive stock in the waste management sector.
About Urban Enviro Waste Management Ltd
Urban Enviro Waste Management Ltd is a leading player in municipal solid waste management in India. The company provides end-to-end waste management solutions, including waste collection, transportation, segregation, processing, and disposal services.
Currently, the company operates across Maharashtra, Gujarat, Rajasthan, and Chhattisgarh, with significant projects in Jaipur Nagar Nigam, Ankleshwar, NEERI, and MIHAN India Ltd.
Why is the Stock Rallying?
Several factors are driving investor optimism around Urban Enviro Waste Management Ltd:
- Steady Order Wins: The company continues to secure high-value municipal contracts, boosting revenue visibility.
- Strong Financial Growth: A 54.6% jump in revenue and 90% rise in net profit indicate robust business performance.
- Industry Growth Potential: With increasing focus on urban cleanliness and waste management, companies in this sector are poised for long-term growth.
- Undervalued Stock: The stock’s P/E ratio of 13.4 is much lower than the industry average of 23.3, suggesting potential upside.
- Government Initiatives: Programs like Swachh Bharat Mission and Nirmal Gujarat 2.0 continue to provide lucrative opportunities for waste management companies.
Frequently Asked Questions (FAQs)
1. Why did Urban Enviro Waste Management Ltd stock hit the upper circuit?
The stock surged 5% after the company secured a ₹7.77 Crore work order from Anjar Municipality, Gujarat, for a two-year cleaning contract.
2. How has the stock performed over the past year?
The stock has delivered an 18.5% return in the past year and an impressive 134% return since its listing in June 2023.
3. What are the company’s recent work orders?
Urban Enviro recently won:
- ₹88 Lakh order from Petlad Municipality, Gujarat (garbage collection & transportation).
- ₹12 Lakh order from Anjar Municipality, Gujarat (road cleaning under Nirmal Gujarat 2.0).
4. How is the company performing financially?
The company’s H1FY25 revenue grew by 54.6% YoY to ₹71.9 Crore, while net profit jumped 90% YoY to ₹7.6 Crore.
5. Is Urban Enviro Waste Management Ltd a good investment?
The company has:
- High ROE (51.6%) and ROCE (29.8%).
- Strong revenue and profit growth.
- Low P/E ratio (13.4), making it undervalued compared to industry peers.
With increasing government contracts and a growing waste management sector, the stock remains an attractive long-term investment.
Final Thoughts
Urban Enviro Waste Management Ltd continues to strengthen its position in India’s fast-growing waste management sector. The recent contract win and its impressive financial performance have bolstered investor confidence. With steady revenue growth, strong profit margins, and increasing government support for waste management initiatives, the company is well-positioned for further growth in the coming years.
Will Urban Enviro Waste Management Ltd continue its upward rally? Only time will tell, but the fundamentals certainly look promising
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.