The company primarily undertakes specialised MSW collection & transportation (C&T;) projects, MSW processing projects and mechanised sweeping projects for municipalities and private players. Having undertaken more than 25 projects as of November 15, 2020, of which 18 are ongoing, Antony has demonstrated a track record of a comprehensive service provider equipped with the resources to handle large-scale projects for municipalities and private players. Its portfolio of 18 ongoing projects as on November 15, 2020, comprises 12 MSW C&T; projects, two MSW processing...
issues. However, we remain cautious on its long term growth based on factors like large dependency on projects from State government authorities primarily Municipal Corporations (unstable budget allocation for MSW management), highly competitive market (with presence of local, national and global players), untested and still emerging business model, huge capex...
issues. However, we remain cautious on its long term growth based on factors like large dependency on projects from State government authorities primarily Municipal Corporations (unstable budget allocation for MSW management), highly competitive market (with presence of local, national and global players), untested and still emerging business model, huge capex...
Valuation and Recommendation AWHC's growth shall be lumpy and dependent on AWHC bagging new contracts; however over the long run, growth should atleast be in line with that of industry growth of 14% CAGR over FY20-25E. Return on capital employed is expected to remain stable around ~20% in line with the past trend on the back of moderate and region specific competition with entry barriers in place to restrict new competitors. AWHC enjoys a long and credible track record of proven execution capabilities (with large municipalities in Mumbai and NCR region). Expansion into newer geographical clusters and diversification into new growth areas of managing landfills and Waste To Energy should also aid future growth. AWHC is being offered at P/E of 21x its FY20 EPS (vs. international average of 27x). We believe AWHC's pricing has left some scope for upside in the long term and recommend subscribing to the issue.
Antony Waste Handling Cell Limited (AWHCL) is one of the top five players in the Indian Municipal Solid Waste (MSW) Management industry, providing a full spectrum of MSW services. It chiefly caters to municipal bodies, and has undertaken more than 25 large-scale projects over the course of nearly 2 decades, of which 18 are ongoing. The Company provides a full range of MSW management services including Collection & Transfer (C&T;), mechanized sweeping, waste processing and waste-to-energy. The current portfolio of projects comprise 12 C&T; projects, two MSW processing projects and four mechanized sweeping projects. The project portfolio is diversified across multiple municipalities in urban and semi-urban areas, thus minimizing counter-party risk. The projects also have different time periods and thus expire at different times, creating a...
