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Small-cap stock Denta Water and Infra Solutions rose 1.4% on Monday, April 6, on the BSE, extending gains for the third consecutive session. In three sessions, the stock has cumulatively gained 10.4%.

Experts say the recent stock price gains could be driven by increased optimism about the Jal Jeevan Mission.

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.

As Mint reported, the Union cabinet and its committee on economic affairs (CCEA) gave its go-ahead to raise the outlay for the Jal Jeevan Mission 2.0 to ensure tap water for every rural household to ₹8.7 lakh crore till 2028.

SEBI-registered market expert Avinash Gorakshakar observed that the Jal Jeevan fund disbursement has resumed. So, that could be one of the reasons the market is expecting strong orders for the company this quarter.

"The company is well-established with good promoters. In between, all these Jal Jeevan companies were brought down because the market knew the government wasn't disbursing money. But now, the government has announced a very big budget. So, that money will come, and orders will follow. That is the reason there is interest in this stock," Gorakshakar noted.

Some 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.

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.

Meanwhile, on April 1, the company 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.

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.

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