SPML Infra (SPMLINFRA)

FairStock Score: 41/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer