Denta Water's share price has been rising after ratings agency CARE Ratings reaffirmed the credit ratings on the company's certain long-term and short-term bank facilities. (Pexels)AI Quick ReadSmall-cap stock Denta Water jumped more than 18% in three consecutive sessions after ratings agency CARE Ratings reaffirmed the credit ratings on the company's certain long-term and short-term bank facilities.
Denta Water share price opened at ₹266.35, up nearly 9% from its previous close of ₹244.65 on the BSE on Monday, April 6, extending gains for the third consecutive session, cumulatively gaining 18.5%.
The stock has been in the green since April 1 after the company, on that day, announced in an exchange filing that CareEdge Ratings (CARE Ratings Ltd) had reaffirmed the "CARE BBB" rating with a stable outlook on the company's long-term bank facilities worth ₹10.50 crore.
Additionally, CARE Ratings reaffirmed "CARE BBB" rating with stable outlook and "CARE A3+" on the company's long-term/short-term bank facilities worth ₹100.50 crore.
Experts appear positive about the stock for the long term as they believe the company is well-positioned to capitalise on the ₹8.7 lakh crore Jal Jeevan Mission 2.0 opportunity.
In March, the Union Cabinet approved a total outlay of ₹8.69 lakh crore for the Jal Jeevan Mission, increasing the Centre’s share to ₹3.59 lakh crore from ₹2.08 lakh crore in 2019–20.
According to Nitant Darekar, a research analyst at Bonanza, the Jal Jeevan Mission (JJM) is strongly positive for Denta Water and Infra Solutions stock.
"Denta's EPC business model, which focuses on water treatment, purification, distribution infrastructure, and groundwater recharge, complements JJM's ₹8.7 lakh crore investment in rural water supply projects, which has been extended till 2028," said Darekar.
"The business has secured various contracts in Karnataka, including Kerehalli and Chikkabenakal, totalling nearly ₹400 crore. This adds to an exceptional order book of ₹841 crore, ensuring long-term revenue visibility and execution tailwinds. This positions Denta for sustained growth amid the government's water mission push," Darekar added.
The company said that of the total ₹345 crore in JJM projects awarded to it, approximately ₹127 crore remains outstanding in its current order book, highlighting a strong execution pipeline. The company also continues to actively explore opportunities under JJM 2.0, reinforcing its growth visibility.
C. Mruthyunjaya Swamy, Chairman of Denta Water, said: “Over the longer term, Denta’s alignment with the mission’s rural focus positions it well within India’s broader push towards water security and last-mile connectivity. Its capabilities in groundwater recharge, wastewater treatment and integrated water management place it at the centre of this evolving landscape."
"Crucially, the programme’s growing emphasis on sustainability and lifecycle management plays to the company’s strengths beyond project execution. Opportunities in operations, maintenance and system optimisation are set to expand, creating avenues for recurring revenue,” Swamy added.
According to the company's exchange filing in February, its revenue in Q3FY26 stood at ₹535.2 million, up from ₹513.5 million year-on-year (YoY). Profit after tax (PAT) for Q3FY26 stood at ₹143.1 million, down from ₹149.6 million YoY. EBITDA rose to ₹196.1 million in Q3FY26 from ₹193.6 million in Q3FY25.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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