Arihant Capital has upgraded SPML Infra to a ‘buy’ rating with a Rs366 target, citing a significant increase in order backlog and plans to venture into battery energy storage systems supported by a Rs1,128 crore NTPC contract and a US partnership.
Arihant Capital has turned bullish on SPML Infra, assigning the engineering and water-infrastructure company a “buy” rating and a target price of Rs366, Business Today Bazaar reported. The call came as the stock gained more than 4% in afternoon trade, with the counter changing hands at about Rs199 on both the BSE and NSE.
According to Arihant Capital, SPML Infra is one of India’s longer-established water and environmental infrastructure EPC companies, with roots stretching back to 1981 and a track record of more than 700 completed projects. The broker said the company has executed work across drinking water, sewage and wastewater treatment, irrigation, and bulk water supply, as well as transmission and distribution projects in the power sector.
The report also pointed to a sharp improvement in the order book after the resolution of older debt through NARCL. By the end of FY26, SPML Infra’s order book had climbed to about Rs5,369 crore, nearly five times earlier levels, with roughly three-quarters of the work won after 2024 and margins of at least 10% embedded in those projects, according to the brokerage. Arihant Capital added that the company is preparing to expand into battery energy storage systems from FY27, supported by a roughly Rs1,128 crore NTPC contract and a 10-year exclusive partnership with US-based Energy Vault.
Not all market signals are as upbeat. MarketsMojo downgraded SPML Infra to “strong sell” in March on concerns over technical weakness and high leverage, citing a debt-to-equity ratio of 3.55 times, before later lifting the rating to “hold” in April and again in July as the stock’s technical picture improved. Arihant Capital’s own company data shows SPML Infra has a market capitalisation of Rs1,689.67 crore and trades on the BSE and NSE under the symbols 500402 and SPMLINFRA.
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