SPML Infra (SPMLINFRA)
TurnaroundFairStock Score: 41/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹190.56 |
| Market Cap | ₹1,603.56 Cr |
| P/E Ratio | 20.4 |
| ROCE | 8.91% |
| ROE | 9.59% |
| Dividend Yield | 0% |
| Profit Growth | 87.5% |
| Debt/Equity | 0.38 |
| Sales Growth | 83.2% |
| Promoter Holding | 38.77% |
| 52-Week Range | ₹151.01 — ₹288.75 |
| Sector | Construction |
| Book Value | ₹118.26 |
Strengths
- Profit growth of 104.63% and sales growth of 22.30% show strong recent momentum.
- Piotroski F-Score of 7/9 indicates improving financial health and operational efficiency.
- Debt-to-equity of 0.44 is modest for a construction company, reducing bankruptcy risk.
- PEG of 0.35 implies the stock is reasonably valued relative to its growth rate, if sustained.
Concerns
- Thin profit margins (net profit of ₹20 Cr on sales of ₹230 Cr) leave little room for error.
- P/E of 22.21 is rich for a cyclical construction business with no dividend yield.
- ROE of 9.59% and ROCE of 8.91% are moderate, indicating no exceptional competitive advantage.
- Promoter holding of 38.77% is not particularly high for Indian infrastructure firms.
AI Analysis
Let me look at SPML Infra with a clear eye. It's a civil construction firm, and that's a business I generally approach with caution. Construction is capital-intensive, cyclical, and often lacks the pricing power that creates durable moats. The numbers here are a mixed bag. On the positive side, the balance sheet is not scary: debt-to-equity of 0.44 is manageable, and the Piotroski F-Score of 7/9 suggests financial health is improving. Sales grew 22.30%, and profit jumped 104.63%—that kind of growth is eye-catching, but I must ask from what base. The latest quarter shows sales of ₹230 Cr and net profit of ₹20 Cr, implying a thin margin that is typical of this industry. ROE of 9.59% and ROCE of 8.91% are decent but not outstanding; they don't signal a franchise with exceptional economics. The stock trades at ₹218.36 with a P/E of 22.21, which is not cheap for a construction player, though a PEG of 0.35 suggests the market may be underestimating near-term growth. Still, I don't see a wide moat here. Promoter holding at 38.77% is adequate but not commanding. There is no dividend, so my return must come entirely from business performance. This looks like a cyclical or turnaround situation, riding on infrastructure spending. If they can sustain this growth and keep leverage low, the stock could work, but I would demand a margin of safety before committing. For now, I'd watch and wait rather than chase.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer