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SPML Infra shares jump after Arihant Capital initiates Buy rating
Arihant cites a nearly five-fold rise in SPML Infra’s order book to ₹5,369 crore in FY26 and expects revenue to more than double by FY28.
SPML Infra shares rose more than 2% on Monday, 17 August, after Arihant Capital Markets initiated coverage of the water and infrastructure company with a Buy rating and a target price of ₹366. The brokerage said the call implies upside of about 92.6% from SPML Infra’s previous closing price of ₹190.
Arihant expects SPML Infra to enter FY27 with key balance-sheet and funding constraints largely resolved, shifting attention to execution and turning its order book into revenue. It projects revenue to more than double by FY28, supported by an order book of ₹5,369 crore.
The brokerage said SPML’s order book increased nearly five-fold from ₹1,093 crore in FY24 to ₹5,369 crore in FY26, with about 75% of the newer projects secured after 2024. Arihant expects structural margin expansion, pointing to targeted 10–12% margins for the newer portion and a tapering legacy order book.
Arihant also highlighted a balance-sheet improvement, with consolidated borrowings falling to ₹358 crore and net worth rising to ₹948 crore in FY26. It cited lower leverage, debt-to-equity at 0.38x, and credit upgrades to BBB (Stable) by CRISIL and ICRA, and noted the company is expanding into battery energy storage systems backed by a ₹1,128-crore NTPC order, with planned capacity growth from 2.5 GWh to 5 GWh.