This Small-cap Water Management Stock, engaged in developing infrastructure projects across India, focusing on water management, power distribution, environmental solutions, and civil construction services for government agencies, is in focus after the company expects 50 percent growth in top line and bottom line.
With a market capitalization of Rs. 1,459.73 crores, the share of SPML Infra Limited has reached an intraday high of Rs. 209.65 per equity share, rising nearly 10.08 percent from its previous day’s close price of Rs. 190.45. Since then, the stock has retreated and is currently trading at Rs. 205.45 per equity share.
Order Book: As of March 31, 2025, SPML Infra Limited has a total order book of Rs. 3,000 crore. The company’s total order book stands at approximately 2.06 times the market cap, reflecting 105.52 percent more than its current market value.
SPML Limited is expecting a strong bidding pipeline valued at over Rs. 9,000 crore, covering both water and Battery Energy Storage Systems (BESS) projects. The company aims to secure Rs. 3,000–5,000 crore annually in water-related contracts and Rs. 1,500–2,000 crore each year in BESS projects.
CAPEX: The company has announced a capital expenditure of Rs. 175 crore for its Battery Energy Storage System (BESS) facility, to be developed in two phases. The first phase, costing Rs. 125 crore, is fully funded through promoter equity. Additionally, USD 4 million was spent to acquire BESS technology from Energy Vault.
Guidance: The company expects higher margins from new orders, with EBITDA margins of 10–15 percent, while older orders have lower margins of 4–5 percent. BESS manufacturing is expected to deliver over 15 percent margins due to backward integration. For FY26, management is targeting about 50 percent growth in revenue and profit, assuming normal business conditions.
SPML Infra Limited was founded in 1981 and was earlier known as Subhash Projects and Marketing Limited. It is known for handling large infrastructure projects and mainly works in areas like water management, power, environment, and civil infrastructure, and has strong experience in completing and managing projects in these sectors.
The company works with major clients such as Delhi Jal Board, National Mission for Clean Ganga, Jal Jeevan Mission, PHED Rajasthan, and Bangalore Water Supply and Sewerage Board. The company mainly focuses on water management projects for these government agencies.
Coming into financial highlights, SPML Infra Limited’s revenue has decreased from Rs. 461 crore in Q4 FY24 to Rs. 189 crore in Q4 FY25, which is a drop of 59 percent. The company’s net loss converted into net profit, from Rs. -4 crore in Q4 FY24 to Rs. 12 crore in Q4 FY25.
In terms of return ratios, the company’s ROCE and ROE should be 8.92 percent and 7.79 percent, respectively. SPML Infra Limited has an earnings per share (EPS) of Rs. 6.75, and its debt-to-equity ratio is 0.48x.
Written By – Nikhil Naik
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