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

Shares of SPML Infra rose over 2% on Monday, 17 August, after Arihant Capital Markets initiated coverage on the infrastructure company with a “Buy” rating and a target price of ₹366, implying a potential upside of around 92.6% from the previous closing price of ₹190.

The brokerage believes SPML Infra is entering FY27 with its key balance-sheet and funding constraints largely resolved, shifting the focus towards execution and order-book conversion. Arihant expects the company's revenue to more than double by FY28, supported by its ₹5,369-crore order book, while improving margins and a stronger financial position could further drive earnings growth.

Arihant Capital sees a significant turnaround opportunity in SPML Infra, supported by a stronger balance sheet, restored bidding capacity and a substantially improved order book. The company’s four-decade track record, with 700+ projects, over 5,000 MLD of water-treatment capacity and 10,000+ km of pipelines, gives it strong pre-qualification credentials in India’s water infrastructure market.

SPML’s order book increased nearly five-fold from ₹1,093 crore in FY24 to ₹5,369 crore in FY26, providing revenue visibility for the next three years. Around 75% of the order book comprises newer projects secured after 2024, carrying targeted margins of 10–12%, while the lower-margin legacy order book is expected to taper off. This shift is expected to support structural margin expansion.

The company’s financial position has also improved significantly. Consolidated borrowings declined to ₹358 crore, while net worth increased to ₹948 crore in FY26. Debt-to-equity improved to 0.38x, with CRISIL and ICRA upgrading the company to BBB (Stable).

SPML is also expanding into battery energy storage systems (BESS), backed by a ₹1,128-crore NTPC order and a planned increase in capacity from 2.5 GWh to 5 GWh.

With stronger project selection, lower leverage, improving margins and a growing BESS opportunity, execution remains the key catalyst for SPML’s next phase of growth.

Vijay Kedia’s investment holding

Renowned investor Vijay Kedia, through his brokerage firm Kedia Securities Private Limited, held a 1.77% stake in SPML Infra at the end of the June 2026 quarter.

In July 2026, Kedia's wife Manju Kedia also participated in the company's ₹190-crore fundraising exercise, subscribing to 13.45 lakh SPML Infra warrants.

Upon conversion of the warrants, the combined holding of Kedia Securities Ltd. and Manju Vijay Kedia is expected to increase to 28,43,107 shares. Based on the expanded equity base following the preferential issue and full conversion of all warrants, their combined stake would rise to nearly 3% in SPML Infra.

SPML Infra share price today

SPML Infra share price today opened at ₹194.80 apiece on the BSE, the stock touched an intraday high of ₹196.05 per share, and an intraday low of ₹187.20 apiece.

SPML Infra shares have shown mixed performance across different time frames. The stock has gained 3.68% over the past week, while it is down 0.69% over the past two weeks and 5.49% over the past month.

Over the three-month period, the stock has declined 2.24%, while it has gained 3.71% in six months. On a year-to-date basis, SPML Infra shares are up 2.23%, indicating a largely range-bound performance despite recent gains.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.