This multibagger stock hits upper circuit; zooms over 550% in one year

Shares of infrastructure development company SPML Infra Ltd zoomed 5 per cent to hit the upper circuit and intraday high of Rs 63.3 after the company announced that it has signed an agreement with Public Health Engineering Department (PHED), Rajasthan for a large water supply project under the 'Jal Jeevan Mission'.

The stock closed 5 per cent higher at Rs 63.3 against the previous close of Rs 60.3 on the BSE. With a market capitalisation of Rs 249.5 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

In the last one year, the share price of SPML Infra jumped from Rs 9.6 to Rs 63.3, logging around 559 per cent return in this period. The stock has gained over 125 per cent on an year-to-date basis.

An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 32.96 lakh today.

SPML Infra said that the Isarda Water Supply, project valued at Rs 1,157.80 crore, is aimed at providing clean drinking water facilities to about 25,00,000 people residing in 1,256 villages and six towns of Dausa and Sawai Madhopur districts in Rajasthan.

The project will be completed within the stipulated 24 months period (3 per cent incentive will be given for completing before timeline). After the defect liability in a year period, SPML Infra will be responsible for managing the operation and maintenance of the project for next 10 years’ time.

SPML Infra said it has become a trusted partner to execute medium and large water supply projects under the ‘Jal Jeevan Mission’ scheme in both rural and urban India.

"The company has already executed a number of projects under this scheme in different states and has created a landmark with faster execution of projects in an effort to achieve the goal of ‘Har Ghar Jal’," it said.

The company reported a 104 per cent year-on-year rise in its net profit for the quarter ended December 2021 at Rs 1.01 crore. It had posted a net loss of Rs 27.42 crore for the quarter ended December 2020.

However, net sales came in at Rs 276.01 crore in December 2021 quarter, down 10.74 per cent from Rs 309.21 crore in December 2020 quarter.