SPML Infra Limited

Industrials — Engineering & Construction · NSE

₹150.10−₹0.65 (−0.43%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of SPML Infra Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SPML Infra Limited operates as an infrastructure development company in India.

IndustryEngineering & Construction

SectorIndustrials

Employees260

Annual revenue₹818 Cr

How does it make money?

Turns over ₹818 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 260 employees supports ₹3.15 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.15 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 5.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -4% while net margin moved +19855% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-4%

Margin effect+19855%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.58 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

14.9x

3Y Median

1175.6x

40 monthly readings · mean 1219.5x · range 16.1x–3849.6x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 99% below its 3y median of 1175.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 51% below the peer median of 30.1x.

vs. its own history

Cheap

1175.6x median over 40 months · -99%

vs. sector peers

Cheap

30.1x median of 3 peers · -51%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

20.8x

PEG

0.03

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 7.0% to 9.9% over 3 years.
Debt is being paid down
Total debt is down 73% over 3 years.
Return on equity is rising
ROE has improved from 0.1% to 7.9%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹179 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 34% against revenue up -4% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 74% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.0% to 9.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 73% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 99% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 51% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 8%✓ 9.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹179 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 5.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 1175.6x✓ 14.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹1,274 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.9x

Cheap

Cheap against the generic band

P/B Ratio

1.27x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.09

Profitable

Profitable on a per-share basis

ROE

7.9%

Weak

Weak capital efficiency

ROCE

5.3%

Weak

Low return on total capital employed

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

82.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

87.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹179 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

9.2%

Average

Average margins

Net Margin

8.6%

Average

Average bottom-line conversion

Current Ratio

1.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

159.5 / 173.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹855 Cr	₹1,230 Cr	₹731 Cr	₹818 Cr	-1.4%
EBITDA	₹60 Cr	₹178 Cr	₹60 Cr	₹81 Cr	+10.5%
EBITDA Margin	7.0%	14.5%	8.2%	9.9%	—
PAT (Net Profit)	₹0 Cr	-₹7 Cr	₹48 Cr	₹75 Cr	+476.0%
EPS	₹0.08	₹-1.42	₹6.36	₹9.33	+388.6%
ROE	0.1%	-1.5%	6.2%	7.9%	—
ROCE	4.5%	4.8%	4.4%	5.3%	—
Total Debt	₹1,754 Cr	₹812 Cr	₹524 Cr	₹474 Cr	-35.3%
Free Cash Flow	₹20 Cr	₹528 Cr	-₹72 Cr	-₹179 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.4% a year).

🟢 EBITDA has grown at 10.5% a year over 3 years.

🟢 EBITDA Margin has risen from 7.0% to 9.9% over 3 years (+2.9 pts).

🟢 PAT (Net Profit) has grown at 476.0% a year over 3 years.

🟢 EPS has grown at 388.6% a year over 3 years.

🟢 ROE has risen from 0.1% to 7.9% over 3 years (+7.8 pts).

🟡 ROCE has held roughly flat at 5.3% over 3 years.

🟢 Total Debt has shrunk at 35.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹20 Cr to -₹179 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,296 Cr

Total Liabilities

₹1,348 Cr

Cash & Equivalents

₹64 Cr

Operating Cash Flow

-₹113 Cr

Capex

-₹66 Cr

Shareholding (proxy)

Institutional Holding

3.3%

Insider Holding

60.8%

Corporate Actions

Ex-Dividend Date

26 Sept 2011

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

2 mixed4 general

SPMLINFRA Forecast — Price Target — Prediction for 2027

TradingView, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

SPML Infra named fastest growing construction company at global awards

scanx.trade, 17 Oct

SPML Infra Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

SPML Infra Share Price near 52-week low, investment view

Univest, 12 Oct

Vijay Kedia portfolio: Arihant Capital sees over 90% upside in this infra stock. Should you buy?

Livemint, 17 Aug

SPML Infra's (NSE:SPMLINFRA) Earnings Are Weaker Than They Seem

Simply Wall Street, 05 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑