Small Cap Company Expands Global Presence With New Subsidiary In Africa To Boost Water Treatment Operations
The company went public with an IPO in December 2024, raising Rs 1,750 million.
Concord Enviro Systems Limited has made an announcement regarding the setting up of its wholly owned subsidiary in Kenya which will be known as Concord Enviro Africa Limited through its wholly owned subsidiary Concord Enviro (FZE). This strategic move aims to provide industrial water and wastewater treatment solutions in the region. The newly formed entity will operate within the waste water treatment industry, aligning with Concord Enviro's core business activities.
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The company has subscribed to 100 per cent of the share capital of Concord Enviro Africa Limited, amounting to Kshs. 100,000. This expansion into the African market marks a significant step for Concord Enviro Systems Limited as it seeks to enhance its global footprint and leverage opportunities in the industrial water treatment sector.
Concord Enviro Systems Ltd was formed in the year 1999 and is involved in the manufacture and trade of water treatment plant components as well as provides technical consultancy and design services. The company provides a range of products and services, including water treatment systems, pollution control equipment, bio filters, and resource recovery systems using membrane technology. It also offers operational and maintenance services, consumables, spares, and rehabilitation solutions.
Concord Enviro serves a global clientele, exporting to North America, Latin America, Africa, the Middle East, and Southeast Asia. In FY24, exports accounted for 42 per cent of its revenue, while domestic sales contributed 58 per cent. The company's revenue is primarily derived from the sale of goods, which constituted 90 per cent of its total revenue in FY24. Concord Enviro's customer base is highly concentrated, with its top customer contributing 92 per cent of revenues in FY24. The company went public with an IPO in December 2024, raising Rs 1,750 million.
The current stock price of Concord Enviro Systems Limited is Rs 519.35. Over the past year, the stock has recorded a 52-week high of Rs 812.40 and a 52-week low of Rs 431.50. The company has a market capitalization of Rs 1,075 crore, indicating its position as a relatively Small-Cap company in the market. Concord Enviro Systems is currently trading at a Price-to-Earnings (PE) ratio of 463.3. Among public shareholders, Afholdings holds a notable stake of 14.13 per cent in the company.
Disclaimer: The article is for informational purposes only and not investment advice.