Smallcap stock jumps 9% after Vijay Kedia acquires 15 lakh shares in the company

Synopsis: SPML Infra shares surged 9% as ace investor Vijay Kedia, through his firm Kedia Securities, acquired a 1.95% stake in the company for Rs 25 crore. The transaction signals long-term conviction and strengthens the company’s shareholding profile.

The shares of this company, which is a margin-accretive water and power EPC project, position it well for India’s long-term infrastructure capex cycle and have enabled drinking water access for over 50 million people, highlighting its on-ground impact, and had their share of momentum today after Vijay Kedia acquired a stake in the company.

With the market cap of Rs 1,388 crore, the shares of SPML Infra Ltd have gained about 9% and reached a high at Rs 207.95, compared to their previous day’s closing price of Rs 190.10 . The shares are trading at a PE of 30.1, whereas its industry PE is at 17.6, and the shares have given a return of 1,200% over the last 5 years.

About the stake Acquisition

Kedia Securities’ acquisition of a 1.95% stake in SPML Infra itself is a good confidence booster for the market. This kind of activity takes place because of medium- to long-term investment views and not necessarily for short-term trading purposes. This deal of Rs 25 crores, Rs 167 per share, shows some level of confidence, especially in the context of Kedia’s background of investing in turnaround and capex-linked ideas at early stages of the cycle. The acquisition is a fresh stake buy by Vijay Kedia. 

This will help in improving the shareholding quality of the company without unleashing any negative pressure in the market through a sell-off. In the case of SPML Infra, which currently deals in water, power transmission, and infrastructure EPC businesses, the presence of a reputed group as an investor will certainly be a sentiment booster in the market.

Financials and more

The revenue from operations for the company stood at Rs 188 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 189 crores, which is in a similar range. However, the net profit stood at Rs 15 crore in Q2 FY26, up compared to the Rs 13 crore profit in Q2 FY25.

SPML Infra boasts itself as a leading integrated water management and infrastructure company in India, more focused on water and energy infrastructural developments and management. Having more than four decades of experience and a presence all across the nation, the company has delivered more than 700 turnkey projects in both the water and power sectors. 

Services and expertise are provided as third-party turnkey solutions such as drinking water supply projects, wastewater management projects, and energy projects EPC contracts, with various international certifications that signify process quality and delivery standards at SPML Infra. The magnitude and experience of delivery class SPML Infra as a part of Indian core infrastructure.

The customer base of SPML Infra stands out for the close association that the firm has with the government as well as other public infrastructure initiatives. Its major clients include government institutions like Delhi Jal Board, National Mission for Clean Ganga, Jal Jeevan Mission, PHED Rajasthan, and Bangalore Water Supply & Sewerage Board. Such a customer base with long association periods with SPML Infra confirms consistency with major government agendas like providing access to water, sanitation, and environmentally sustainable infrastructure for cities.

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