Shares of Antony Waste Handling Cell surge over 7% following subsidiary's Rs 386 crore contract win

Indian frontline indices today witnessed a notable rebound following a prolonged decline over multiple trading sessions. These indices soared more than 1%, driven by robust performance in the BSE Utilities, BSE Power, BSE Realty and BSE Auto sectors. Notably, the broader indices demonstrated significant outperformance, endeavouring to offset the losses observed in previous trading sessions.

Antony Waste Handling Cell Ltd, a small-cap waste management company, garnered significant investor attention as the company disclosed that its wholly-owned subsidiary, AG Enviro Infra Projects Private Limited, had successfully secured a substantial contract worth Rs 386 crore for the door-to-door collection and transportation of municipal solid waste (MSW) in the Panvel Municipal Corporation (PMC) area. The awarded contract encompasses a duration of 5 years, with the added provision for a potential 2-year extension.

This positive development led to a surge in buying interest, propelling the company’s shares to climb by more than 7%, reaching an intraday high of Rs 417.90 per share on the BSE. Shares of the company have experienced a robust rally, surging by over 20% in the past month and delivering an impressive 57% return over the last six months.

The company’s shares are currently trading with a PE ratio of 18, whereas the industry average PE stands at 44. Additionally, for the financial year 2023, the company has reported a solid 18% return on equity and a similar return on capital employed.

Antony Waste Handling Cell Ltd is a prominent and established player in the Indian municipal solid waste management sector, boasting a track record spanning over two decades. The company offers a comprehensive range of municipal solid waste services, including solid waste collection, transportation, processing, and disposal services across India, with a primary focus on serving various municipalities.

Keep a close eye on this stock for the upcoming trading sessions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.