Enviro Infra Engineers Ltd.
ISIN: INE0LLY01014 • Market Cap: ₹3,448 Cr
The 5-Pillar Quality Audit for Enviro Infra Engineers Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (22.8%), Return on Capital Employed (25.3%), and equity compounding (17.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.23 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (55.2%) and 3Y PAT CAGR (51.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 19.05 vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 70.2%, backed by 1.4% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 25.3%)
Enviro Infra Engineers Ltd. generates exceptional return on capital employed of 25.3%, reflecting pricing power and competitive moat.
Strong Topline Expansion (3Y Sales CAGR: 55.2%)
Revenue has expanded at 55.2% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 51.5%)
Net earnings have compounded at 51.5% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 19.05)
Trading at a P/E multiple of 19.05, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Utilities)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Utilities space.
Quantitative Strategy Eligibility
Checking EIEL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 82/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Utilities Sector Peer Comparison
Compare EIEL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Enviro Infra Engineers Ltd. (EIEL)Current | 82/100 | ₹3,448 Cr | 19.05 | 25.3% | 0.23 | — |
| Va Tech Wabag Ltd. (WABAG) | 68/100 | ₹12,347 Cr | 31.27 | 18.2% | 0.09 | View |
| Ion Exchange (India) Ltd. (IONEXCHANG) | 53/100 | ₹5,465 Cr | 55.72 | 13.6% | 0.34 | View |
| Refex Industries Ltd. (REFEX) | 79/100 | ₹4,075 Cr | 16.57 | 21.3% | 0.12 | View |
Frequently Asked Questions: Enviro Infra Engineers Ltd.
Q:What is the 5-Pillar Fundamental Score for Enviro Infra Engineers Ltd. (EIEL)?
Enviro Infra Engineers Ltd. has a RupeeTools Fundamental Score of 82/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (82/100), Financial Health (78/100), Growth (99/100), Valuation (80/100), and Ownership Quality (65/100).
Q:Is EIEL fundamentally strong for long-term investment?
Yes, EIEL exhibits solid fundamental strength with a 82/100 score, driven by a return on equity of 17.7% and a debt-to-equity ratio of 0.23.
Q:Does EIEL pass the Coffee Can Investing filter?
Yes! EIEL satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does EIEL compare against other Utilities peers?
Within India's Utilities sector, EIEL trades at a P/E of 19.05 and generates an ROCE of 25.3%. Compare its 5-Pillar score of 82/100 against top sector peers like Va Tech Wabag Ltd. (68/100), Ion Exchange (India) Ltd. (53/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.