SEPC Limited (SEPC) AI Stock Analysis

• Market Cap: ₹11.93B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.70
• Revenue Growth: 8.69%
• EPS Growth: 51.66%
• Country: IN
• Employees: 229
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Engineering & Construction
• EPS (TTM): 0.08
• Shares Outstanding: 1,593,164,400
• 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: ₹8.00 ▼(-18.28% Downside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

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

Sustained double-digit revenue expansion (43.1% reported) indicates durable demand for SEPC's EPC services and growing project execution scale. Over 2-6 months this supports better negotiation leverage with suppliers, higher utilization of project teams, and potential for more stable milestone cash inflows as contracts progress.

Improving Gross Margins

Reported improvement in gross profit margins reflects better procurement and onsite execution efficiencies. Margin recovery at the gross level is a structural positive for long-term profitability because it shows the company can capture more spread on fixed-price EPC contracts and has room to absorb overhead while pursuing scale.

Strong Equity Base

A high equity ratio (~63.1%) denotes a conservatively financed balance sheet, giving SEPC resilience through project cycles. This structural strength supports access to working capital and bid capacity for new contracts, reduces refinancing risk, and cushions cash flow volatility common in long-duration EPC projects.

Negative Factors

Negative Operating Cash Flow

Persistent negative operating cash flows and negative free cash flow highlight a structural liquidity challenge for an EPC firm reliant on milestone receipts. Over several months this forces reliance on external financing or customer advances, raising execution risk on large projects and limiting flexibility to fund growth or absorb cost overruns.

Thin Net Profit Margins

Despite revenue and gross margin gains, net margins remain thin, indicating persistent pressure from SG&A, finance costs, or project-level inefficiencies. Structurally weak bottom-line conversion reduces retained earnings for reinvestment, weakens ROE improvement prospects, and constrains the firm's ability to self-fund working capital needs.

Elevated Leverage Risk

A debt-to-equity ratio of ~23.8% is flagged as relatively high for the company's profile and raises structural interest and refinancing exposure. Combined with negative operating cash flow, this leverage level can strain liquidity during project delays or cost overruns and limits the firm’s maneuvering room for new large contracts.

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 profitability is a concern with thin net profit margins. The balance sheet is stable with a strong equity base, but high debt-to-equity ratio requires careful management. Cash flows are concerning with negative operational cash flows, highlighting liquidity challenges.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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 above the 20-day moving average (MA) of 8.75, above the 50-day MA of 9.07, and below the 200-day MA of 11.36, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 35.86 is Neutral, neither overbought nor oversold. The STOCH value of 4.40 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	₹22.89B	22.48	―	3.64%	-8.09%	-12.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NILKAMAL	61 Neutral	₹20.50B	18.95	―	1.43%	12.40%	-9.69%
KCP	59 Neutral	₹20.41B	13.65	―	0.14%	-6.76%	-31.51%
SEPC	53 Neutral	₹11.93B	27.33	―	―	8.69%	51.66%
HIMATSEIDE	51 Neutral	₹12.51B	17.25	―	0.21%	-7.55%	-30.11%
WEL	50 Neutral	₹18.90B	170.04	―	0.07%	4.28%	32.37%

SEPC Limited Corporate Events

SEPC Order Book Hits ₹10,455 Crore, Signalling Strong Multi‑Year Growth

SEPC Limited has entered a decisive growth phase, with its consolidated order book reaching a record ₹10,455 crore as of 31 December 2025, driven by robust order inflows in FY26 and disciplined project selection across core infrastructure segments. On a standalone basis, the order book has risen sharply to ₹7,255 crore from ₹4,501 crore as of 31 March 2025, underscoring an accelerated order conversion cycle and strengthening market credibility.

The company’s order book is strategically diversified, with mining and construction together accounting for over 77% of the standalone portfolio, complemented by water, power, and other infrastructure segments that enhance execution scale and operating leverage. SEPC’s mix of 48% domestic and 52% international orders, including significant business through SEPC FZE, provides both alignment with India’s infrastructure upcycle and geographic diversification, translating into strong multi-year revenue visibility and improved growth prospects for stakeholders.

During FY26 up to 31 December 2025, SEPC secured fresh orders totaling ₹5,954 crore, reflecting strong bidding momentum and growing client confidence in its execution capabilities. This elevated order pipeline positions the company to translate scale into sustained revenue growth, better operating leverage and greater balance-sheet resilience, reinforcing its competitive standing in the EPC infrastructure space.

SEPC wins ₹314 crore smart prepaid metering mandate in Punjab

SEPC Limited has secured a Letter of Intent from state-owned Telecommunications Consultants India Limited to implement a smart prepaid metering project in Punjab’s Central Zone under the Revamped Distribution Sector Scheme. Valued at about ₹314 crore and executed on a DBFOOT basis with Adya Smart Metering, the mandate covers end-to-end deployment and long-term operation of advanced metering infrastructure for Punjab State Power Corporation, with milestone-linked payments during the post–Go-Live phase.

The win bolsters SEPC’s order book and deepens its presence in power distribution and digital metering, aligning with its strategy to grow annuity-based, long-duration revenue streams while managing capital and risk. Backed by sustained public-sector spending on power reforms and recent financial momentum, including Q3 FY26 revenue already exceeding the prior full year, the project enhances SEPC’s visibility and positioning to benefit from favourable infrastructure and energy-sector tailwinds.

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.