Enviro Infra (EIEL)

FairStock Score: 57/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

Strengths

• ROCE of 31.68% indicates strong capital efficiency
• Low debt-to-equity of 0.26 provides balance sheet stability
• Promoter holding of 70.13% aligns management interests with minority shareholders
• Piotroski F-score of 7/9 suggests healthy financial fundamentals
• Latest quarter net margin is robust at ~16.8% (₹42 Cr profit on ₹250 Cr sales)

Concerns

• Sales growth of only 1.04% limits long-term compounding potential
• No dividend yield offers no cash return while waiting
• P/B of 3.28 and PEG of 1.69 leave little margin of safety
• ROE is not reported/available, making the quality of equity returns unclear

AI Analysis

At ₹212.95, Enviro Infra is not the kind of bargain Graham would chase, but it offers some qualities I respect. The business earns a ROCE of 31.68%, which tells me management puts capital to work well. Debt-to-equity is only 0.26, so the balance sheet is conservative. Promoters hold 70.13%, and I'd rather have owners with skin in the game. The latest quarter net profit of ₹42 Cr on sales of ₹250 Cr is a healthy 16.8% margin. The Piotroski score of 7/9 also suggests decent financial health. But I have to be honest: sales growth is only 1.04%. This is not a fast grower. Profit grew 10.06%, but if the top line stays flat, that kind of profit growth cannot go on forever. The zero dividend yield doesn't help; I like getting paid while I wait. A P/B of 3.28 is not cheap, and with ROE not disclosed, I cannot confirm the quality of equity compounding. At a P/E of 13.17, the market is pricing moderate expectations. The PEG ratio of 1.69 reminds me I am not buying a bargain; I'm paying a fair price for a steady compounder, if the growth holds. I would classify this as a Slow Grower. It's financially stable, has a good return on capital, and low leverage. But I need evidence that revenue growth can revive. If water infrastructure demand in India takes off and project execution remains disciplined, this could be an interesting holding. If sales stay sluggish, the current profit growth will fade. I'd keep my position small, or wait for a lower price, because there is no margin of safety at this valuation.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer