SPMLINFRA Price Action

SPML Infra Ltd (SPMLINFRA) is exhibiting notable momentum and price appreciation in 2025:

- **Current Price**: Around ₹289–₹308 as of August 2025.
- **Performance**:
- 1-year return is strong at about 45.5%, with a **21% increase in the past month** and **3.6% in the past week**.
- Recent volatility: The price has fluctuated from lows around ₹136 up to a high of ₹323 in the last year.
- **Valuation**:
- **P/E Ratio**: Approximately 42, indicating aggressive pricing compared to earnings.
- **P/B (Price to Book)**: Around 2.6, reflecting the market’s willingness to pay a premium over the company’s asset value.
- **Market Cap**: About ₹2,038 crore.
- **Profitability**:
- **ROE** (Return on Equity): ~8% for the last year, but 3.7% over the past three years, which is modest.
- **EBITDA Margin**: About 5.5%.
- **Strong Profit Growth**: 49% CAGR over 5 years; sharp turnaround recently, although past sales growth has been negative.
- **Concerns**:
- **Sales Growth**: Negative (-15% CAGR over 5 years).
- **High Promoter Pledge**: About 27% of promoter shares are pledged, which may be a risk.
- High debt and debtor days remain elevated.
- **Dividend**: No dividend payout.
- **Momentum Rank**: Among the top 21% companies showing bullish momentum currently.

**Conclusion**: SPML Infra’s stock price reflects recent bullish momentum, despite muted sales growth and some balance sheet risks. Profit growth and operational improvements have buoyed sentiment, but the high valuation metrics and promoter pledging warrant caution. The stock is considered volatile, and investors should monitor fundamentals alongside price trends.