Denta Water & Infra Solutions
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Denta Water and Infra Solutions is positioned for stable growth, supported by a robust order book of ₹7,277.76 million and a high bid win rate of approximately 75%. Management's focus on leveraging its expertise in water management and groundwater recharging aligns well with national infrastructure priorities, particularly government initiatives like the Jal Jivan Mission. However, the company is experiencing margin pressure due to a shift in project mix, with smaller, lower-margin projects impacting profitability. Despite this, management remains optimistic, projecting EBITDA margins between 25-30% for FY27. Vista's financial outlook reflects this stability, with revenue growth expected to remain consistent with historical performance, although margins may face continued pressure. The favorable macro environment in India, characterized by strong manufacturing activity and government spending, further supports Denta's growth trajectory. Over the next 12-24 months, key opportunities include expanding into new geographical markets and securing high-margin projects, while watchpoints include potential delays in government payments and the execution challenges of balancing project types. Overall, Denta's strategic focus and strong financial position underpin Vista's positive investment outlook
Why We Like This Stock
- Strong order book and high bid win rate indicate robust demand for Denta's services
- Strategic expansion into new markets aligns with government infrastructure initiatives
- Management's focus on high-margin projects supports long-term value creation
Things To Watch Out For
- Margin pressure from smaller, lower-margin projects may impact profitability
- Sensitivity to government payment delays could affect cash flow
- Political shifts may influence tender timelines and project execution
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 239 | 203 | 250 | 279 | 333 |
| Profit Before Tax (Cr.) | 81 | 72 | 82 | 72 | 92 |
| PBT Margin | 33.9% | 35.4% | 3280.0% | 25.9% | 27.7% |
| Net Profit (Cr.) | 60 | 53 | 61 | 54 | 68 |
| Earnings Per Share | 22.5 | 19.9 | 22.8 | 20.1 | 25.5 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Denta Water and Infra Solutions Limited, a water and infrastructure solution company, engages in the design, installation, and commissioning of water management infrastructure projects in India. The company provides groundwater recharging and construction projects in the field of railways and highways. It also offers operation and maintenance services for water management infrastructure projects. The company was incorporated in 2016 and is based in Bengaluru, India.