Spray Engineering Devices: India’s Engineered Sustainability & Process... Spray Engineering Devices: India’s Engineered Sustainability & Process Expertise Story Read more

Why This Company Matters

The modern industrial plants have to save on energy, minimise on water, and adhere to high environmental standards, particularly in sugar, ethanol and process industries.

Spray Engineering Devices Ltd (SED) is an organisation that specialises in offering the specialised technologies and engineered systems required to enable these improvements in order to assist clients to be efficient and sustainable in their operations.

From Village Roots to Global Innovation

Spray Engineering started off as a small-roadside fabrication company that specialised in the sugar business, then graduated to a comprehensive process-engineering solutions company. The company has its head office located in Mohali and several advanced manufacturing plants located in Baddi, Himachal Pradesh.

Global Presence: Indian Modern, Sold in 40+ Countries.

• SED has a presence in 40+ countries where it delivers engineered systems to industrial customers worldwide.
• The company has an approximate workforce of 15,00,750 or more installations, 100 or more patents and 20 variations of their products that are energy efficient. 

This presence in the global footprint makes SED one of only a few Indian process-engineering companies that have a global presence in technology, the Made in India label.

The Problems Solved by Spray Engineering.

The most typical concerns of industries are:

1. Expensive steam, energy, and water prices.
2. Zero Liquid Discharge (ZLD) regulatory pressure.
3. Requirement of process upgrades which are cost effective.

Spray Engineering develops and provides solutions that assist in assisting plants:

✔ Decrease the use of steam and energy.

✔ Enhance the effectiveness of evaporation and heat transfer.

✔ Sustainably treat industrial wastewater.

✔ Water reuse and recycle, reducing the costs of operations.

Core Product Portfolio: Designed to Be Efficient.

The products of Spray Engineering meet the basics of industry requirements:

🔹 Evaporation & Distillation Systems

• Falling film evaporators

• Multiple-effect evaporators

• Low temperature MVR-based evaporators
  These systems also reduce steam and energy use within sugar and ethanol plants to a great extent.

🔹 Heat Transfer & Recovery

• Heat exchangers

• Condensers

• Flash vessels
  They assist clients in capturing and reusing heat to better the economics of the plants in general.

🔹 Crystallisation & Sugar Refining Equipment

• Continuous & batch vacuum pans

• Crystallisation systems for sugar processing
  These solutions improve the sugar yield and quality.

🔹 Zero Liquid Discharge (ZLD) & Water Recycling

• Treatment of industrial waste water.

• Custom ZLD configurations
  These assist in adhering to the stringent environmental laws as well as water conservation among plants.

🔹 Industrial Automation & Engineering Services

In addition to hardware services, SED offers engineering, fabrication and commissioning services that are unique to individual plants.

Leadership & Governance

The board of Spray Engineering has engineering, financial, and operations experience:

• Mr. Vivek Verma – Managing Director

• Mr. Vimarsh Verma – Director

• Mr. Shridhar Venkatesh – Nominee Director

• Ms. Arshdeep Kaur – Independent Director

• Ms. Niveta Sharma – Independent Director

• Mr. Rinkal Goyal – Company Secretary & Compliance Officer

This leadership mix is very strong as it is a mix of technical, operational, and governance skills.

Shareholding Pattern (FY25)

Promoters & Promoter Group: ~70.28%

Mr. Vivek Verma (CMD): 48.59%

Mr. Prateek Verma (WTD): 21.69%

Non-Promoter / Public Shareholders: ~29.72%

Includes Klondike Investments Ltd.: 11.25%

Other public and non-promoter entities: 18.47%

Financial Snapshot

Growth Meets Cyclicality

• The growth in revenues was high, with the increase in FY21-FY24 with 111.45 Cr to 548.27 Cr, due to high volumes of order and performance.

• During FY25, revenue decreased by an estimated 16% YoY to 461.82 Cr, which is an indication of project deferrals, reduced execution pace, or an unfavorable environment of orders.

• EBITDA has grown consistently until FY24, and the margins were maximized at 16.26, which is an indicator of operating leverage.

• During FY25, EBITDA margin declined drastically to 8.58 %, which is a sign of cost pressures, less absorption of the fixed costs, or less profitable projects.

• PAT increased steadily until FY24 ( 53.15 Cr) but fell drastically to FY25 to 15.03 Cr, contracting the margin of PAT to 3.25%.

• EPS took the same path and increased sharply until FY24 but dropped by nearly 72% YoY in FY25 as the earnings is volatile.

Balance Sheet & Ratios

• Equity base grew significantly, climbing from ₹21.87 Cr in FY21 to ₹205.03 Cr in FY25. This reflects retained earnings and new investment. 

• Total assets increased more than threefold over five years, showing growth in operations. 

• Debt rose in absolute terms but remains well managed compared to equity. 

• Debt-to-equity ratio steadily improved from 1.06x in FY21 to 0.45x in FY25. This indicates that the balance sheet is becoming less reliant on debt. 

• Capital employed grew sharply, which supports long-term growth potential.

Forecasting to FY30: Structured Scenarios

• Forecast Scenarios: Based on an 8–12% revenue growth rate, 7–9% profit after tax margins, and a price-to-sales ratio of 1.5x–2.5x, the estimated revenue for FY30 is ₹679–814 Cr, with profit after tax of ₹48–73 Cr. This suggests a valuation of ₹1,018–2,035 Cr and a price range of ₹406–811.
• Cycle and Structure Play: While the business is cyclical and linked to capital expenditures, long-term demand depends on ethanol blending, sustainability rules, water efficiency, and industrial improvements.
• Investor Fit: This investment is best for those looking to hold for 3–5 years who understand cyclical businesses. Key factors to watch are order inflows, execution, working capital, and margin recovery.

Peer Snapshot:

Why Spray Engineering Stands Out

• Fastest growth in peers: 3-year revenue CAGR of 28.8%, surpassing Praj and ISGEC.

• Margins lag, growth leads: Lower current profitability indicates a scale-up phase, not weak demand.

• Project-led working capital: Higher working capital days are typical for process-EPC businesses.

• Balanced leverage: Debt to equity ratio at 0.45 keeps balance sheet risk manageable.

• Valuation equals growth optionality: The market values Spray Engineering for its future growth, not its current margins.
  
  

Final Conclusion  

• Spray Engineering is not suitable for short-term investors. Its performance can fluctuate due to its cyclical, project-driven nature, which may not appeal to those seeking quick price movements or momentum-based returns.  

• However, for investors who can handle volatility, look beyond quarterly changes, and invest with a long-term perspective, Spray Engineering Devices Ltd (SED) is a strong industrial player. As an unlisted company, it provides access to trends like sustainability and process efficiency at an early stage.  

• Long-term, research-focused investors can track and evaluate such unlisted opportunities on Sharescart, where patience and fundamentals go hand in hand.

Disclaimer

This article is for educational and informational purposes only and does not constitute investment advice or a recommendation. The content is based on publicly available information and independent analysis. Sharescart and its contributors do not have any vested interest in the company mentioned. Readers should conduct their own research and consult a financial advisor before making any investment decisions. Investments in unlisted shares carry risks, including liquidity and valuation risks.