Kanadevia Corporation

“Kanadevia holds a genuine specialist position in structurally growing waste-to-energy EPC, but recurring cost overruns at its HZI subsidiary have kept ROIC near or below WACC for multiple years, FCF has been negative two years running, net debt quintupled in FY2025, and governance provides no accountability mechanism for minority holders. The stock is genuinely cheap at ~10.7x forward earnings and a margin recovery would be materially rewarding, but three years of evidence with no credible fix, poor board alignment, and a balance sheet with no buffer against further project losses means conviction is insufficient to act — this is a watchlist name pending proof of EPC margin restoration.”