(1/n)
SPML Infra - A MULTIBAGGER in the making
A Detailed Thread on India's Leading Water Infra Co
🔄Do Retweet to Educate Investor Community
#StockMarket #StocksToTrade #StocksInFocus #StocksToBuy #stocks #Investment #investing
SPML Infra - A MULTIBAGGER in the making
A Detailed Thread on India's Leading Water Infra Co
🔄Do Retweet to Educate Investor Community
#StockMarket #StocksToTrade #StocksInFocus #StocksToBuy #stocks #Investment #investing
(2/n)
Mkt cap - 190cr
Book Value - 76
P/B - 0.67x
▫️SPML Infra Limited is a leading Infrastructure Development company with over 40 years experience in the public as well as private sector.
Mkt cap - 190cr
Book Value - 76
P/B - 0.67x
▫️SPML Infra Limited is a leading Infrastructure Development company with over 40 years experience in the public as well as private sector.
(3/n)
▫️Co undertakes tender based contract from government departments & has a pan-India presence with ongoing projects at Delhi, Uttar Pradesh, Rajasthan, Bihar, Gujarat, Maharashtra & Karnataka.
▫️Co undertakes tender based contract from government departments & has a pan-India presence with ongoing projects at Delhi, Uttar Pradesh, Rajasthan, Bihar, Gujarat, Maharashtra & Karnataka.
(4/n)
▫️Co has expertise in executing world class infrastructure for water treatment & transmission, waste water handling, treatment & recycling, solid waste management, power transmission & distribution & civil infrastructure development.
▫️Co has expertise in executing world class infrastructure for water treatment & transmission, waste water handling, treatment & recycling, solid waste management, power transmission & distribution & civil infrastructure development.
(5/n)
▫️Co has managed & implemented over 650 projects across India on an EPC (Engineering, Procurement and Construction), PPP (Public Private Partnership) and BOOT (Build-Own- Operate-Transfer) basis
▫️Co has managed & implemented over 650 projects across India on an EPC (Engineering, Procurement and Construction), PPP (Public Private Partnership) and BOOT (Build-Own- Operate-Transfer) basis
(6/n)
Track Record & Milestones
▫️Among World’s Top 50 Private Water Management Companies
▫️650+ completed projects
▫️10000+ KM of cross country pipelines
▫️800000 households connected to electricity
▫️5000+ MLD of water pumping stations
▫️20000+ Villages Electrified
Track Record & Milestones
▫️Among World’s Top 50 Private Water Management Companies
▫️650+ completed projects
▫️10000+ KM of cross country pipelines
▫️800000 households connected to electricity
▫️5000+ MLD of water pumping stations
▫️20000+ Villages Electrified
(7/n)
▫️2000+ Mild Water Treatment Plants
▫️1000+ Mild Sewage Treatment Plants
▫️1500+ kms of roads and highways
▫️500+ kms sewerage network
▫️500,000+ Smart water meters installed
▫️2000+ Mild Water Treatment Plants
▫️1000+ Mild Sewage Treatment Plants
▫️1500+ kms of roads and highways
▫️500+ kms sewerage network
▫️500,000+ Smart water meters installed
(8/n)
▪️Co used to be a High Performer, subsequently fell into trouble due to 2000/2500cr receivables stuck in arbitration, Mounting Debt further added to woes & ac became NPA
▪️Working Capital Constraints further led to delays in Project Executions & Subsequently reported losses
▪️Co used to be a High Performer, subsequently fell into trouble due to 2000/2500cr receivables stuck in arbitration, Mounting Debt further added to woes & ac became NPA
▪️Working Capital Constraints further led to delays in Project Executions & Subsequently reported losses
(9/n)
▪️Now with Debt Restructuring in its Final Stages, a formal Approval is expected by the end of Feb'22
Co has already made a Turnaround in Q2FY22 & Debt Restructuring will help it Improve its performance further
▪️Now with Debt Restructuring in its Final Stages, a formal Approval is expected by the end of Feb'22
Co has already made a Turnaround in Q2FY22 & Debt Restructuring will help it Improve its performance further
(10/n)
▪️1573cr worth of Debt could be considered non-sustainable & payable over 14 years without Interest
▪️Annual Interest cost will be lower by 180-200cr
▪️1.3cr shares to be issued to lenders
▪️49cr Rights Issue will provide growth capital
▪️1573cr worth of Debt could be considered non-sustainable & payable over 14 years without Interest
▪️Annual Interest cost will be lower by 180-200cr
▪️1.3cr shares to be issued to lenders
▪️49cr Rights Issue will provide growth capital
(11/n)
Strong Q3 Performance
▪️Revenue at 250cr
▪️PAT at 2.5cr vs 25.4cr Loss YoY
▪️During FY21, Co has won orders worth 5770cr from the esteemed clients in the state of Odisha, Manipur, and Uttar Pradesh including several projects under the Jal Jeevan Mission
Strong Q3 Performance
▪️Revenue at 250cr
▪️PAT at 2.5cr vs 25.4cr Loss YoY
▪️During FY21, Co has won orders worth 5770cr from the esteemed clients in the state of Odisha, Manipur, and Uttar Pradesh including several projects under the Jal Jeevan Mission
(12/n)
▪️Executing over 40 projects in water, power, irrigation and sanitation sectors
▪️ Q4 expected to be similar to Q3
Projections
FY23 Estimates
▪️Revenue of 1200cr
▪️EBITDA at 145cr
▪️Interest cost of 40cr
▪️Executing over 40 projects in water, power, irrigation and sanitation sectors
▪️ Q4 expected to be similar to Q3
Projections
FY23 Estimates
▪️Revenue of 1200cr
▪️EBITDA at 145cr
▪️Interest cost of 40cr
(13/n)
FY24 Estimates
▪️Revenue of 1800cr
▪️EBITDA at 215cr
▪️Interest cost of 40cr
FY25 Estimates
▪️Revenue of 2500cr
▪️EBITDA at 300cr
▪️Interest cost of 50cr
Co continues to bid for water projects aggressively for project tenders worth 20000cr with JV partners
FY24 Estimates
▪️Revenue of 1800cr
▪️EBITDA at 215cr
▪️Interest cost of 40cr
FY25 Estimates
▪️Revenue of 2500cr
▪️EBITDA at 300cr
▪️Interest cost of 50cr
Co continues to bid for water projects aggressively for project tenders worth 20000cr with JV partners
(14/n)
Big Arbitration Awards
▪️Co has won Arbitration Awards worth 700cr in its favor
▪️310 cr already deposited in Escrow account
▪️Although these awards have been challenged in higher courts, we are pretty confident that co will win these Arbitrations in Higher courts as well
Big Arbitration Awards
▪️Co has won Arbitration Awards worth 700cr in its favor
▪️310 cr already deposited in Escrow account
▪️Although these awards have been challenged in higher courts, we are pretty confident that co will win these Arbitrations in Higher courts as well
(15/n)
▪️Arbitration Awards itself are more than 3.5x current market cap
▪️Once co receives this money, co will have a Huge Growth Capital required for execution of its projects
▪️Arbitration Awards itself are more than 3.5x current market cap
▪️Once co receives this money, co will have a Huge Growth Capital required for execution of its projects
(16/n)
Big Trigger to Provide Impetus to Earnings
▪️US$270 billion (₹18.5 trillion) is likely to be invested in water infrastructure over the coming 10 yrs, through programmes for piped water supply to all homes by 2024, river-linking, Namami Gange & PMKSY
Big Trigger to Provide Impetus to Earnings
▪️US$270 billion (₹18.5 trillion) is likely to be invested in water infrastructure over the coming 10 yrs, through programmes for piped water supply to all homes by 2024, river-linking, Namami Gange & PMKSY
(17/n)
▪️Nal Se Jal scheme is GOIs ambitious project to ensure every rural house gets piped water by 2024
Nal Se Jal alone will need ₹6.3 trillion in investment
▪️We expect co to win 5% of orders from different projects, which provides an Opportunity of ~93000cr over next 10 yrs
▪️Nal Se Jal scheme is GOIs ambitious project to ensure every rural house gets piped water by 2024
Nal Se Jal alone will need ₹6.3 trillion in investment
▪️We expect co to win 5% of orders from different projects, which provides an Opportunity of ~93000cr over next 10 yrs
(18/n)
Cos financials will grow by Leaps & Bounds
Operational Performance will see a significant improvement
🎯 Currently available at a Mkt cap of Just 200cr which is extremely tiny for a co with such Bright Prospects
HUGE Potential for BIG MULTIBAGGER Returns
Cos financials will grow by Leaps & Bounds
Operational Performance will see a significant improvement
🎯 Currently available at a Mkt cap of Just 200cr which is extremely tiny for a co with such Bright Prospects
HUGE Potential for BIG MULTIBAGGER Returns
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