Urban Enviro Waste Management — a fast growing player in India’s municipal solid waste (MSW) management space — has once again proved its operational strength by bagging a big order worth INR 19.06 crore from Nagar Nigam Jaipur Heritage (NNJH). This new order comes on the back of 1:1 bonus share issuance earlier this year and is a big positive for the company and investors.
Urban Enviro’s Jaipur Heritage Order Details
As per regulatory filing, Urban Enviro has been awarded a 2 year contract for comprehensive waste management services for all 30 wards of Hawa Mahal Amer Zone in Jaipur.
Scope of services:
- Door-to-door household waste collection
- Waste segregation and transportation
- Collection from open depots
- Sweeping waste management
- GPS and Vehicle Tracking Systems (VTS)
The order worth INR 19,06,63,200 is another big addition to the company’s municipal service contracts, especially in key regions like Rajasthan, Maharashtra, Gujarat and Chhattisgarh.
Bonus Issue: Rewarding Shareholders
Earlier this year on 7 February 2025, Urban Enviro rewarded its shareholders by issuing 43.3 lakh bonus shares in 1:1 ratio (one bonus share for every share held). The bonus issue was a confidence booster for the company’s future growth and to improve liquidity and retail participation.
Strong Financial and Operational Performance
Urban Enviro’s financials show its transformation from a regional player to a national player:
- Revenue Growth: Net sales grew by 162% to INR 102 crore in FY24 from FY23.
- Operating Profit: Up 125% to INR 18 crore.
- Net Profit: Up 250% to INR 7 crore.
- Return on Equity (ROE): 52% over 3 years.
- ROCE (Return on Capital Employed): 30%.The stock price has also reflected this operational performance. It has risen 46% from its 52 week low of INR 136.05 per share and is currently trading at around INR 188 per share after recent order wins.
Momentum Building Series of Orders:
Urban Enviro has been expanding rapidly, winning new orders:
- Bhilai Municipal Corporation, Chhattisgarh (Jan 2025): INR 50.28 crore for 1 year waste collection, transportation and drain cleaning.
- Anjar Municipality, Gujarat (March 2025): INR 7.77 crore for 2 year cleaning operations contract.
- Petlad Municipality, Gujarat: INR 88 lakh for door-to-door garbage collection.
- Additional Anjar Municipality Order: INR 12 lakh for road cleaning and sweeping under Nirmal Gujarat 2.0 Grant.
From handling 1,000 metric tonnes of waste daily in FY22, Urban Enviro has doubled its capacity to 2,000 metric tonnes by FY24 and has scaled up its fleet by 330 new vehicles, including electric vehicles — in line with sustainability goals.
Urban Enviro Post-IPO Performance
Urban Enviro launched its IPO on 12 Jun 2023, the IPO was a mix of fresh issue (INR 9.20 crore) and an OFS (2.22 crore). The INR 11.42 crore IPO was subscribed 242X and listed with 48.05% returns on listing day. on 7 Feb 2025, the IPO stock undergone a 2:1 stock split. So the adjusted allotment price now stands at INR 50 per share. Post-listing Urban Enviro made an all-time high of INR 340.03 per share, reflecting a multibagger returns of 580%. Currently, it is trading around INR 188 per share (a correction of 44%).
Regional Growth: Focused Geographic Expansion
Chhattisgarh has contributed 4% of Urban Enviro’s revenues in FY22 and 42% in FY24. With projects in Jaipur, Saoner, Ankleshwar and Mul, the company is now eyeing Tier 2 and Tier 3 markets to consolidate its position in MSW segment.
Valuations and Investment Perspective
With a market cap of INR 161 crore, Urban Enviro is a micro-cap. Key valuation parameters support the investment thesis:
- P/E Ratio: 19.37 (way below the industry average of 40.17).
- Debt/Equity Ratio: 0.79, very conservative.
- 1-Year CAGR:
- Revenue: 161.7%
- Net Profit: 227%
- Operating Profit: 131%
Management’s focused approach, operational excellence and financial discipline provides a solid foundation for long term value creation.
Conclusion
Urban Enviro’s recent order win from Nagar Nigam Jaipur and strong historical and recent performance makes a strong case for a micro-cap to grow multi-fold. Post bonus, impressive order book, expanding service offerings and geographic diversification makes Urban Enviro a stock to watch out in India’s waste management and environmental services space.
Seasoned investors looking for high growth small cap opportunities in essential services may find Urban Enviro an interesting play for their portfolio.  For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.