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Antony Waste Handling stock jumps 9% on large order announcement

Stocks
2 min Read Oct 7, 2024
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Shares of Antony Waste Handling Cell, a Mumbai-based waste management firm, experienced a significant boost, climbing 8.99% to ₹761.85 per share on the NSE. This surge followed the company’s announcement on Saturday regarding a substantial contract won by its subsidiary, AG Enviro Infra Projects, valued at ₹908 crore. Investors are keen to watch this development as they consider options to invest in stocks in the waste management sector.

Key contract details

This substantial project underscores the growing demand for efficient waste management solutions in urban areas: 

  • Project value: AG Enviro Infra Projects has secured a contract for Door-to-Door Collection and Transportation (C&T) of Municipal Solid Waste from the Navi Mumbai Municipal Corporation (NMMC).

  • Duration: The contract covers a concession period of nine years.

Recent upgrades bolster confidence

In late September, AG Enviro Infra Projects received an upgraded credit rating from CARE Ratings. The company’s long-term bank facilities saw an increase from ₹60 crore to ₹69 crore, with its rating rising from ‘CARE BBB-; Stable’ to ‘CARE BBB; Stable.’ Furthermore, its long-term/short-term bank facilities also grew from ₹15 crores to ₹38 crores, achieving a new rating of ‘CARE BBB; Stable / CARE A3+,’ an improvement from the previous ‘CARE BBB-; Stable / CARE A3-.’

Financial performance snapshot

Antony Waste Handling has faced challenges in the recent past. In Q1 FY25, the company reported a significant revenue decline of 47% year-on-year, amounting to ₹8.82 crore. Its net profit also plummeted by 86.2%, reaching ₹0.27 crore compared to ₹1.97 crore in the same quarter last year.

Despite these setbacks, the small-cap company has a total market capitalisation of ₹2,067.07 crore, with shares trading at a price-to-earnings valuation of 20.13 times.

As of 10:29 AM, Antony Waste Handling’s stock price had risen by 4.15% to ₹728 per share on the NSE. In comparison, the NSE’s Nifty50 index increased slightly by 0.04% to 25,023.40 points.

Key takeaways

  • Antony Waste Handling’s shares surged after winning a ₹908 crore contract.

  • AG Enviro Infra Projects received a credit rating upgrade from CARE Ratings.

  • The company faced significant revenue and profit declines in Q1 FY25.

  • Antony Waste Handling has a market capitalisation of ₹2,067.07 crore.

  • Investors looking to invest in stocks in the waste management sector should monitor Antony Waste Handling closely.

With this latest contract win and financial developments, Antony Waste Handling presents an interesting option for those looking to invest in stocks related to waste management.