Waste Management Stock in Focus as Antony Waste Targets 25% Revenue CAGR
Introduction
Waste Management Stock : Antony Waste Handling Cell Ltd, a key player in India’s waste management sector, is gaining significant attention after announcing ambitious revenue growth targets. The company aims for a long-term revenue compound annual growth rate (CAGR) of 20-25%, driven by operational efficiency, sustainability initiatives, and strategic project expansions. With steady financial performance and promising industry prospects, Antony Waste is positioning itself for long-term success in a rapidly evolving market.
Stock Price Movement
On Tuesday, Antony Waste Handling Cell Ltd saw its share price touch an intra-day high of ₹543.60, marking a 2% rise from the previous close of ₹533.75. However, the stock later retreated slightly to ₹531.60. Despite short-term fluctuations, investor interest remains strong, backed by the company’s growth strategies and financial resilience.
Management’s Growth Outlook
The company expects revenue growth in the range of 15-18% in the near term, primarily driven by ongoing contracts and new initiatives. Key projects contributing to this growth include:
- Mumbai’s Construction & Demolition Waste Processing Plant: Focused on sustainable waste management.
- Navi Mumbai’s New Collection & Transportation (C&T) Contract: Expected to commence in April 2025, strengthening its presence in municipal waste management.
- Sitco Bio-Mining Project: Enhancing waste processing efficiency and environmental impact.
With these projects and a strong focus on sustainability, Antony Waste is targeting a long-term CAGR of 20-25%, reinforcing its leadership in the waste management industry.
Operational Efficiency & Performance
Antony Waste has demonstrated strong operational efficiency, particularly in its PCMC Waste-to-Energy Plant, which has significantly improved its plant load factor (PLF):
- First Year PLF: ~71%
- Q3 FY25 PLF: ~77%
- Green Energy Generated: 53 million units
Additionally, the company has made substantial progress in waste processing:
- Municipal Solid Waste Processed: ~0.69 million tonnes
- Collection & Transportation Handled: ~0.49 million tonnes
- Total Waste Managed in Q3 FY25: ~1.18 million tonnes (+3.2% YoY)
- Total Waste Managed in 9M FY25: ~3.56 million tonnes (+5.7% YoY)
A notable highlight is the 7% YoY growth in RDF and compost sales, indicating strong demand for recyclable waste products. Furthermore, the company processed 20,000 tonnes of construction and demolition waste in Mumbai, achieving an impressive 96% recycling rate, reinforcing its commitment to the circular economy.
Strong Financial Performance
Antony Waste Handling Cell Ltd reported Q3 FY25 revenue of ₹243 crore, reflecting a 12% increase YoY from ₹217 crore in Q3 FY24.
- Profit After Tax (PAT): ₹18 crore (+13% YoY)
- Earnings Per Share (EPS): ₹25.67
With consistent revenue growth and rising profitability, the company is poised for sustained financial strength.
Key Financial Ratios
The company’s financial indicators showcase its stability and growth potential.
| Financial Metric | Value | Industry Average |
|---|---|---|
| Market Capitalization | ₹1,503 Cr. | – |
| Current Price | ₹530 | – |
| High / Low (52W) | ₹902 / ₹408 | – |
| Stock P/E Ratio | 20.6 | 26.1 |
| Book Value Per Share | ₹212 | – |
| Dividend Yield | 0.00% | – |
| ROCE (Return on Capital Employed) | 13.9% | – |
| ROE (Return on Equity) | 16.3% | – |
| Debt-to-Equity Ratio | 0.71 | – |
| PEG Ratio | 0.80 | – |
| Graham Number | ₹350 | – |
| Intrinsic Value | ₹778 | – |
| RSI (Relative Strength Index) | 33.1 | – |
| DMA 200 | ₹619 | – |
| Free Cash Flow (3Yrs) | ₹-199 Cr. | – |
| Free Cash Flow (Recent) | ₹-17.4 Cr. | – |
Despite a relatively lower P/E ratio (20.6) compared to the industry average (26.1), the company’s strong ROE (16.3%) and ROCE (13.9%) suggest efficient capital utilization. Additionally, the low pledged percentage (0.23%) and stable promoter holding (46.1%) reflect confidence in the company’s long-term potential.
Growth Outlook & Market Position
Antony Waste Handling Cell Ltd continues to strengthen its foothold in the waste management industry through its diversified business model and strategic investments. The company’s focus on sustainable waste management, operational efficiency, and contract expansions positions it as a key player in the sector.
Why This Stock is Gaining Attention
- Strong Revenue Growth: 15-18% short-term growth outlook, with a long-term CAGR target of 20-25%.
- Expanding Project Portfolio: New contracts in Mumbai and Navi Mumbai to drive future revenue.
- Efficient Operations: Rising PLF in waste-to-energy plants and increasing total tonnage managed.
- Stable Financials: Strong YoY revenue and profit growth, with competitive financial ratios.
- Sustainability Focus: High recycling rates, increasing RDF & compost sales, and circular economy initiatives.
Conclusion
With a robust growth strategy, strong operational execution, and a commitment to sustainability, Antony Waste Handling Cell Ltd is emerging as a key player in India’s waste management sector. Its ambitious CAGR target of 25% and expanding project portfolio make it a stock to watch for long-term investors.
Investors looking for sustainable growth stocks with solid financial performance and a strong market presence should keep an eye on Antony Waste. While short-term fluctuations may occur, the company’s long-term fundamentals remain strong and 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.