Antony Waste Handling's stock was listed at ₹436.10, a 38.44% premium over its issue of ₹315
The ₹300-crore issue of municipal solid waste management company with a price band of ₹313-315 was subscribed 15 times
Shares of Antony Waste Handling Cell Ltd made a strong stock markets debut on the first trading day of 2021. The stock was listed at ₹436.10, a 38.44% premium over its issue of ₹315. The ₹300-crore issue of municipal solid waste management company with a price band of ₹313-315 was subscribed 15 times. The issue was open for subscription between 21-23 December.
Ahead of the issue, Geojit Financial Services Ltd said that at the upper price band of ₹315, the stock is is available at price to earnings of 15 times on FY21 earnings per share (EPS). “Valuation looks attractive, considering healthy margins, improving revenue generation and increasing relevance of waste management," it said.
Antony Waste Handling Cell Ltd is one of the top five players in the Indian Municipal Solid Waste (MSW) management industry. The company was incorporated in 2001 and undertakes MSW C&T (Collection and Transportation) projects, MSW processing projects and mechanized sweeping projects. As of November 2020, the company has 1,147 vehicles and 18 ongoing MSW projects across various municipalities.
“We cannot ignore the inherent risk in the business model as it is dependent on municipal authorities for a substantial proportion of the revenue. This also restricts further investment in asset development," Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd said.
Its ongoing projects comprises of 12 MSW C&T projects, two MSW processing (including Waste to Energy) projects in Kanjurmarg, Mumbai and Pimpri Chinchwad, Pune and four mechanized sweeping projects. Its revenue grew at a CAGR of 18% (FY18-FY20) from ₹276 crore to ₹451 crore driven by contribution from new projects in Pimpri Chinchwad and Nagpur.