One of the small-cap stocks engaged in focusing on water management, wastewater treatment, and urban infrastructure development. The stock has hit a 5 percent upper circuit despite Client Rosehill selling a stake of 1.04%.
Stock movement:
In Friday’s trading session, SPML Infra Limited‘s stock surged by 5 percent, reaching an upper circuit of Rs. 219.05 per share, up from its previous closing price of Rs. 208.65 per share.
Over the past year, the stock has provided impressive returns of more than 181.99 percent. As of November 29, 2024, the company’s market capitalization is approximately Rs. 1,300 crore.
What Happened:
In a recent bulk deal disclosed by the BSE, Client Rosehill sold approximately 7.40 lakh equity shares of SPML Infra Limited via an open market transaction, amounting to nearly Rs. 15.33 crores at an average price of Rs. 207 per share.
As per the October 24, 2024, shareholding data, Client Rosehill owned around 28.38 lakh shares, representing a 4% stake in the company.
Margin Guidance:
SPML Infra Limited reported an EBITDA margin of 13% and a PAT margin of 7% for Q2 FY’25, aligning with its profitability goals.
The management remains focused on securing new orders with targeted margins of 10-12%, balancing profitability with competitive market conditions.
Also read….
Orderbook and Tendering:
SPML Infra Limited holds an order book of approximately Rs. 1,800 crore, with a two-year execution timeline for ongoing projects. The company has bid for tenders worth Rs. 5,000 crore, expecting inflows from December 2024.
The company focused on high-value contracts between Rs. 300 crore and Rs. 1,000 crore, SPML anticipates operational improvements post-Q2, following the election phase.
Strategic Initiatives:
SPML Infra Limited settled an arbitration award with Power Grid Corporation, securing Rs. 25.06 crore as part of a Rs. 268 crore total under the Vivad se Vishwas scheme.
Additionally, the company raised Rs. 346 crore through preferential allotment of shares and warrants, with promoters contributing Rs. 190 crore, bolstering liquidity and operational confidence.
Recent quarter results and ratios:
SPML Infra Limited’s revenue has decreased from Rs. 254 crore in Q2 FY24 to Rs. 189 crore in Q2 FY25, which has grown by 25.59 percent. The net profit of SPML Infra Limited has also grown from zero in Q2 FY24 to Rs. 13 crore in Q2 FY25.
In terms of return ratios, the company’s ROCE and ROE should be 3.69 percent and 0.16 percent, respectively. The debt-to-equity ratio of the company is to be 0.70x. SPML Infra Limited’s EPS is to be Rs. 2.79.
Company Overview:
SPML Infra Limited is an Indian infrastructure development company specializing in end-to-end water and wastewater management solutions. The company operates in the EPC segment and undertakes projects in water treatment, transmission, sewerage, solid waste management, power infrastructure, and smart cities.
The company actively contributes to the Jal Jeevan Mission, and focuses on projects in Odisha, Manipur, and Uttar Pradesh, with subsidiaries like SPML Infrastructure Limited and SPML Utilities Limited.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
