In a significant development that’s caught the attention of market participants and sector watchers alike, seasoned investor Sandeep Singh has made a strategic move by acquiring 1,25,200 equity shares in Effwa Infra & Research—a fast-rising player in the environmental engineering and EPC space.
This transaction represents a 0.54% stake in the company. It was executed on 7 April 2025 on the National Stock Exchange (NSE) for approximately INR 2.26 crore at an average price of INR 180.49 per share. As of 11 April 2025, Effwa Infra shares were trading at INR 229.40 per share. Sandeep Singh’s investment already risen by ~27%.
Sandeep Singh is known for identifying mid and small-cap stocks with high growth potential, and this move brought Effwa Infra into the spotlight.
A Star in the Environmental EPC Space
Effwa Infra & Research incorporated in 2014, it is a niche player offering turnkey solutions in effluent treatment, sewage recycling, solid waste management, hazardous waste incineration and water body restoration. The company has a presence in 8 states of India and 1 SEZ and has delivered over 45 water management projects as of March 2024.
Led by Dr. Varsha Kamal and Mr. Subhash Kamal, the company has an integrated project execution model—engineering, procurement, construction and research—focused on sustainability and environmental conservation.
Financial and Post-IPO Performance
Effwa’s fundamentals have seen a substantial turnaround in recent years:
- Revenue rose from INR 104.37 crore in FY22 to INR 145.16 crore in FY24.
- EPS tripled from INR 2.58 (FY22) to INR 7.74 (FY24).
- ROCE improved sharply from 22.89% (FY23) to an impressive 40.99% (FY24).
Effwa Infra launched its IPO on 5 July 2024, with an issue size of INR 51.27 crore. The IPO saw massive demand, with a subscription figure of 313X. Effwa Infra IPO listed with a multibagger return of 99.45%.
Notably, the Effwa Infra IPO was locked in the upper circuit for 11 consecutive trading sessions post-listing. On 28 August 2024, shares of Effwa Infra reached an all-time high of INR 381.39 per share. Reflecting a 365% return from its allotment price of INR 82 per share. Currently, it is trading with a correction of 39% from its all-time high.
Recent Developments: Expansion, Exports & Rating Upgrade
Post-IPO, Effwa hasn’t slowed down. In fact, the pace has only accelerated:
- A USD 1.5 million export order in Tanzania marks its foray into international markets, with more overseas deals in the pipeline.
- The company reported H1 FY25 revenues of INR 61 crore, an 85% YoY jump, with net profit growing 400% YoY to INR 5 crore.
- CRISIL recently upgraded Effwa’s credit rating from BBB-/Stable to BBB/Stable, citing a strong order book, improving margins (14%), and comfortable liquidity.
Its order pipeline stands at INR 1,800 crore, coupled with a 30% success rate in technical tenders, which underpins robust future growth. Management expects continued strength in H2 FY25, historically a high-execution phase for EPC firms.
Why Sandeep Singh’s Move Matters
Sandeep Singh is not just any market participant—he is known for identifying emerging stars long before they become market darlings. His investment in Effwa signals:
- Confidence in long-term growth prospects, underpinned by strong fundamentals and execution capabilities.
- A validation of Effwa’s pivot towards international markets—a key differentiator in the SME EPC landscape.
- Belief in management’s strategic direction and commitment to an asset-light, cash-positive model—which is rare in infra-centric businesses.
Singh’s entry also adds a layer of institutional credibility, which could draw further investor interest and potentially aid Effwa’s transition from SME board to mainboard in the medium term.
Final Word
Effwa Infra is not without risks—working capital intensity remains a concern, with gross current assets exceeding 180 days, and its project wins are still tied to the unpredictability of government tenders. However, the improving margins, healthy balance sheet, consistent order inflow, and now, backing from a marquee investor, suggest that Effwa is no longer flying under the radar.
For investors looking for exposure to the booming waste management and water infrastructure space, Effwa Infra & Research may well be a stock to watch in the coming quarters.
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Disclaimer: This article is for informational purposes only. Please consult a financial advisor before making any investment decisions. Invest responsibly.