Just sharing the latest announcement.
Invested and biased with 5% allocation.
structural tailwinds are intact just need decent double digit growth for share price to rally even good commentary and guidance will make price rally i guess.
no investment in this company
just tracking
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Company entered into JV with JFE Engineering for Andhra Pradesh WTE plants, whereby JFE Engineering which is legacy Japanese player specialising in Waste to Energy, waste water treatment I.e., sustainability infra as a sector will be EPC guy for both the plants.
JV Structure is 75:25 (75 being AWHCL), to receive investment in JV about 43.60 crores INR.
This in my view should give confidence on the ability of company to bid and win far more contracts due to its association with quality entity like JFE Engineering.
Disc: biased and invested.
JFE Engineering Ltd., a core subsidiary of JFE Holdings, Inc., holds a dominant position as one of Japanās leading engineering firms. It specializes in environmental, energy, and social infrastructure.
As of early 2026, its market positioning is defined by its shift from traditional heavy industry toward āGreen Engineeringā and high-tech infrastructure.
Market Standing & Financials (2025ā2026)
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Revenue Scale: For FY2024, JFE Engineering reported revenue of approximately Ā„569.8 billion. It contributes roughly 10ā11% of the JFE Groupās total consolidated revenue, providing a stable, project-based counterbalance to the more cyclical steel business.
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Profitability: It maintains a solid profit margin (approx. Ā„19.3 billion in FY2024 profit), acting as a āmargin stabilizerā for the parent group.
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Global Reach: The company operates in 49 countries, with a strategic focus on expanding āfrom the insideā in Southeast Asia and India.
Core Business Strengths
JFE Engineering is positioned as a āone-stop solutionā provider (planning, design, construction, and operation) in several key niches:
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Waste-to-Energy (WtE): A market leader in waste management plants, specifically technologies that convert municipal waste into electricity and heat.
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Renewable Energy: Currently positioning itself as a pioneer in Offshore Wind Power. In late 2025, it secured Japanās first domestic order for monopile (foundation) manufacturing for large-scale offshore wind projects.
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Carbon Neutrality: Leading the development of Sustainable Aviation Fuel (SAF) catalysts and ammonia co-firing engines for marine and power generation .
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Bridges & Steel Structures: A āTop Tierā player in Japan for bridge construction and life-extension technologies for aging infrastructur e.
Strategic Competitive Edge
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Vertical Integration: Unlike pure-play engineering firms (like IHI or Hitachi Zosen), JFE Engineering benefits from the JFE Steel supply chain, giving it a cost and material advantage in massive steel-intensive projects like bridges and offshore wind foundations.
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Digital Transformation (DX): The company is aggressively implementing AI-driven supply chain automation and remote plant monitoring to lower operational cos ts.
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The āOnly One / Number Oneā Strategy: JFE focuses on technically complex, high-margin products where they can maintain a proprietary technological āmoatā against regional competitors.
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Hi,
There is a possiblity that total revenues could cross 1500Cr in FY28, based on continuing of existing contracts and additions of new contracts, some estimates below:
- 70% of Contract & Others continiung (from sweeping contracts, RDF & Compost sales, etc)
- C&D scale up
- New BMC C&T contracts fully scaled up
- New Thane processing fully scaled up
- New AP WTE Contract revenue
And current valuation appear to me very modest. There is a chance of valuation re-rating happening, especially, when the sales numbers will start showing good growth. I reckon that there is a potential of making about 1.7x-2x from CMP in next 2-3 years.
The above estimates does not include any new projects that Antony may win and start contributing to the revenues in these 2-3 years.
The risks related to B2G business are inherent. Their attempts to diversify revenues have not advanced materially, like the rPET project, vehicle and tyre recycling, battery recycling (still at drawing board I guess).
Any feedback/inputs welcome on the above thoughts.
Disc: Invested, biased, no reco, purely my thoughts, i could be dead wrong.
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