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Check Before You Invest : Urban Enviro Waste Management Ltd

BSE: 0 NSE: URBAN ISIN: INE0O0201019
  |   Sector:  Miscellaneous   |   Industry:  Environmental Services

Snapshot

Q.1 Which industry/sub-sector does Urban Enviro Waste Management Ltd belong to?
Urban Enviro Waste Management Ltd belongs to the Miscellaneous sector, operating specifically within the Environmental Services segment.
Q.2 Is Urban Enviro Waste Management Ltd a good quality company?
Urban Enviro Waste Management Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Urban Enviro Waste Management Ltd undervalued or overvalued?
Urban Enviro Waste Management Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 7.65 23.69
Price to Book 2.43 5.54
Price to Sales 0.62 1.54
EV to EBITDA 4.63 10.30
Q.4 Is Urban Enviro Waste Management Ltd a good buy now?
Urban Enviro Waste Management Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Urban Enviro Waste Management Ltd?
Urban Enviro Waste Management Ltd revenue growth is 37.7% for FY-2025, which is below its 5-year CAGR of 62.03%, indicating slower growth.

Q.2 Gross Profit margin of Urban Enviro Waste Management Ltd?
Urban Enviro Waste Management Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.7% for FY-2025, which is in line with its 5-year median of 15.7%, indicating stable margins.

Q.3 Operating Profit Margin of Urban Enviro Waste Management Ltd?
Urban Enviro Waste Management Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.76% for FY-2025, which is in line with its 5-year median of 17.96% indicating stable margins.

Q.4 Net Profit Margin of Urban Enviro Waste Management Ltd?
Urban Enviro Waste Management Ltd Net Profit Margin is 7.27% for FY-2025, is above its 5-year median of 6.88%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 15.7 15.7
Operating Profit Margin (%) 17.76 17.96
Net Profit Margin (%) 7.27 6.88

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Urban Enviro Waste Management Ltd?
Urban Enviro Waste Management Ltd Return on Asset is 13.13%, which is above its 5-year historical median of 11.58%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Urban Enviro Waste Management Ltd?
Urban Enviro Waste Management Ltd Return on capital employed is 28.15% for FY-2025, which is in line with its 5-year historical median of 28.15%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Urban Enviro Waste Management Ltd?
Urban Enviro Waste Management Ltd Return on equity is 38.34% for FY-2025, which is below its 5-year historical median of 51.85%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Urban Enviro Waste Management Ltd?
Urban Enviro Waste Management Ltd Cash conversion cycle is 73 days, above its 5-year historical median of 44 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.81 1.81
ROE (%) 38.34 51.85
ROCE (%) 28.15 28.15
Cash Conversion Cycle 73 days 44 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Urban Enviro Waste Management Ltd?
Urban Enviro Waste Management Ltd Debt-to-Equity ratio is 1.29, which is above the industry average of 0.26, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Urban Enviro Waste Management Ltd?
Urban Enviro Waste Management Ltd Debt to cash flow from operations is 3.92, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Urban Enviro Waste Management Ltd?

Q.1 Promoter shareholding and pledge status of Urban Enviro Waste Management Ltd?
Promoters hold 51.19% of the Urban Enviro Waste Management Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Urban Enviro Waste Management Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Urban Enviro Waste Management Ltd vs industry peers?
Urban Enviro Waste Management Ltd revenue CAGR is 62.03%, compared to the industry median CAGR of 4.01%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 37.7 4
Gross Profit Growth (%) 37.5 27
Operating Profit Growth (%) 38.9 13.1
Net Profit Growth (%) 42.9 28.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.81 0.84
ROE (%) 38.34 13.91
ROCE (%) 28.15 13.74
Cash Conversion Cycle (days) 73.06 71

Valuation & price assessment

Q.1 Stock return of Urban Enviro Waste Management Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -25.73% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -25.7%
Q.2 Valuation ratios of Urban Enviro Waste Management Ltd vs historical?
The current P/E ratio of 7.65 is lower than its historical median of 23.69, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 7.65 23.69 31.72
Price to Book 2.43 5.54 4.85
Price to Sales 0.62 1.54 2.84
EV to EBITDA 4.63 10.30 17.87

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