SEPC Limited (SEPC) AI Stock Analysis

• Market Cap: ₹14.26B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 1.63
• Revenue Growth: 8.69%
• EPS Growth: 51.66%
• Country: IN
• Employees: 229
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 1,592,071,900
• 10 Day Avg. Volume: 486,466
• 30 Day Avg. Volume: 1,085,827
• PEG Ratio: -15.62
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 4.06
• P/FCF Ratio: -18.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ₹11.00 ▲(12.36% Upside)

SEPC Limited's overall stock score is primarily impacted by its financial performance and technical analysis. While revenue growth and a stable balance sheet are positives, the company faces challenges with profitability and cash flow. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. These factors collectively contribute to a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for SEPC's services and effective market positioning, supporting long-term business expansion.

Gross Margin Improvement

Improved gross margins suggest enhanced operational efficiency, which can lead to better profitability and competitive pricing strategies.

Stable Balance Sheet

A strong equity base provides financial stability and resilience, enabling SEPC to invest in growth opportunities and weather economic fluctuations.

Negative Factors

High Debt-to-Equity Ratio

A high debt-to-equity ratio can limit financial flexibility and increase risk, potentially impacting SEPC's ability to fund future projects.

Negative Cash Flow

Negative operational cash flow highlights inefficiencies in cash generation, which may constrain SEPC's ability to invest in growth and manage liabilities.

Thin Net Profit Margins

Thin net profit margins suggest difficulties in cost control and pricing power, which could hinder SEPC's long-term profitability and competitive edge.

SEPC Limited Business Overview & Revenue Model

Company Description

Sepc Limited provides integrated design, engineering, procurement, construction, and project management services in India and internationally. It offers turnkey contracting solutions, including design, engineering, and construction for ferrous and non-ferrous industries, cement plants, coke oven and by-product plants, process plants, and material handling plants, as well as transportation; water and sewage treatment plants, intake wells and pump houses, underground drainage systems, water distribution, and pipe rehabilitation systems; biomass, thermal, and solar power plants, as well as wind farms; and mining and mineral processing. The company was formerly known as Shriram EPC Limited and changed its name to Sepc Limited in March 2022. Sepc Limited was incorporated in 2000 and is headquartered in Chennai, India.

How the Company Makes Money

SEPC generates revenue through multiple streams, primarily by providing engineering and construction services on a contractual basis. The company enters into fixed-price or cost-plus contracts with clients, allowing for predictable revenue based on project milestones and completion. Additionally, SEPC earns revenue by offering consultancy services that include project management and feasibility studies for various infrastructure projects. Key partnerships with governmental bodies and large corporations further enhance its revenue potential, as these collaborations often lead to long-term contracts and significant project opportunities. The company also invests in research and development to innovate its service offerings, which helps in attracting new clients and retaining existing ones, thereby contributing to its overall earnings.

SEPC Limited Financial Statement Overview

Summary

SEPC Limited shows positive revenue growth and improved gross margins, but faces challenges with thin net profit margins and negative cash flows. The balance sheet is stable with a strong equity base, but the high debt-to-equity ratio requires careful management.

Income Statement

SEPC Limited has shown a positive trend in revenue growth with a steady increase over the past few years, particularly a 6.5% growth from 2024 to 2025. The gross profit margin also improved, reflecting better cost management. However, net profit margins remain thin, indicating ongoing challenges in translating revenue growth into higher profitability. EBIT and EBITDA margins are improving but still below industry averages, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet shows a solid equity base with a high equity ratio of 63.1%, indicating financial stability. However, the debt-to-equity ratio is relatively high at 23.8%, which could pose a risk if not managed carefully. Return on equity is modest, reflecting lower net income relative to equity, but it has seen an upward trend. Overall, the balance sheet reflects stability with a need for careful debt management.

Cash Flow

Cash flow from operations remains negative, indicating potential liquidity challenges. The company has experienced negative free cash flows, with no significant improvement over the past year. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting profits into cash. The company needs to improve its cash management strategies to ensure sustainable cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.24B	5.98B	5.61B	3.79B	3.29B	5.80B
Gross Profit	1.36B	1.25B	937.11M	597.96M	360.24M	224.40M
EBITDA	882.17M	850.46M	798.46M	989.65M	-994.13M	-661.02M
Net Income	333.08M	248.40M	227.84M	-49.04M	-2.64B	-1.79B
Balance Sheet
Total Assets	0.00	23.87B	22.09B	20.02B	22.23B	24.16B
Cash, Cash Equivalents and Short-Term Investments	492.48M	511.08M	305.98M	353.07M	73.18M	48.02M
Total Debt	0.00	3.58B	4.55B	4.09B	9.81B	8.36B
Total Liabilities	-15.08B	8.79B	9.97B	9.14B	14.84B	14.11B
Stockholders Equity	15.08B	15.06B	12.10B	10.86B	7.38B	10.04B
Cash Flow
Free Cash Flow	0.00	-1.33B	-1.21B	207.66M	-720.05M	-562.07M
Operating Cash Flow	0.00	-1.33B	-1.21B	209.05M	-719.94M	-498.92M
Investing Cash Flow	0.00	37.25M	-239.09M	124.81M	10.25M	210.86M
Financing Cash Flow	0.00	1.18B	1.30B	-61.42M	683.87M	251.59M

SEPC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SEPC, the sentiment is Negative. The current price of 9.79 is below the 20-day moving average (MA) of 9.82, below the 50-day MA of 9.95, and below the 200-day MA of 12.12, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 33.25 is Neutral, neither overbought nor oversold. The STOCH value of 13.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SEPC.

SEPC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAOPALA	64 Neutral	₹22.23B	22.01	―	3.64%	-8.09%	-12.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NILKAMAL	61 Neutral	₹20.46B	19.59	―	1.43%	12.40%	-9.69%
KCP	59 Neutral	₹21.88B	14.57	―	0.14%	-6.76%	-31.51%
SEPC	53 Neutral	₹14.26B	40.05	―	―	8.69%	51.66%
HIMATSEIDE	50 Neutral	₹12.98B	14.96	―	0.21%	-7.55%	-30.11%
WEL	50 Neutral	₹19.43B	124.20	―	0.07%	4.28%	32.37%

SEPC Limited Corporate Events

SEPC Limited Joins Rs. 3,300 Crore Mining Consortium Project

SEPC Limited has announced its entry into a significant Rs. 3,300 crore mining consortium project in collaboration with the JARPL-AT Consortium. This project, awarded by South Eastern Coalfields Limited, involves the Rampur Batura Opencast Coal Mine in Madhya Pradesh and is expected to span approximately 10 years. SEPC’s involvement includes supplying materials, deploying machinery and manpower, and providing project management and consultancy services. This strategic engagement is expected to bolster SEPC’s mining portfolio, enhance revenue visibility, and add stability to its project portfolio in India by participating in a high-value contract with an asset-light and capital-efficient structure.

SEPC JV Secures ₹86 Crore Aviation Project at Bihta Airport

SEPC Limited, a leading EPC company in India, announced that its joint venture with Furlong has secured an ₹86 crore project for developing a new civil enclave at Bihta Airport, Patna. This project, awarded by JSC IA Vozrozhdenie India Private Limited, includes constructing a new terminal, utility buildings, an elevated road, and comprehensive electro-mechanical and IT systems. This win strengthens SEPC’s position in the aviation infrastructure sector and aligns with its strategic growth roadmap, enhancing its project portfolio in India and globally.

SEPC Limited Secures Major Energy Infrastructure Contract in UAE

SEPC Limited, through its UAE arm SEPC FZE, has secured a significant AED 35 million (₹85 crore) subcontract for a strategic energy infrastructure upgrade in the UAE. The project, awarded by Lauren Middle East Engineering Construction L.L.C., involves the installation of critical systems at Mubarraz Island under the Abu Dhabi Oil Company framework. This contract marks a substantial expansion of SEPC’s capabilities in the Middle East, reinforcing its strategy to grow its international portfolio and enhance its reputation in executing complex EPC assignments. The project is expected to run until December 2026, with payment and deliverables aligned with milestone-based contractual agreements.

SEPC Limited Adjusts Payment Schedule for Partly Paid-Up Shares

SEPC Limited has announced a revision in the payment schedule for the First and Final Call on its partly paid-up equity shares, which were issued on a rights basis. Initially set to open on October 23, 2025, the call money period has been postponed to October 24, 2025, following observations from the National Stock Exchange of India Limited. The payment period will now run until November 07, 2025. This adjustment ensures compliance with regulatory guidelines and affects shareholders who hold these partly paid-up shares.