SEPC Limited (SEPC) AI Stock Analysis

• Market Cap: ₹7.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 31.6
• Beta (1Y): 1.89
• 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: 54 Neutral
• Price Target: ₹5.50 ▼(-43.82% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held back primarily by negative operating/free cash flow and a very weak price trend (well below key moving averages with negative MACD). Improving revenue/gross margins and a stable equity base provide some support, but a high P/E with no dividend yield limits valuation upside.

Positive Factors

Sustained Revenue Growth

A 43% reported revenue growth indicates durable demand and successful project wins. Sustained top-line expansion supports scale, better utilization of fixed resources, and gives management scope to invest in capabilities and bidding capacity, strengthening long-term revenue visibility.

Solid Equity Base

A 63.1% equity ratio signals a conservative capital structure that increases solvency and buffer against project overruns. This balance-sheet strength improves access to financing on better terms and supports competitive bidding on large EPC contracts over multiple cycles.

Improving Gross and EBITDA Margins

Rising gross and operating margins point to better procurement, execution and cost control on contracts. Sustainable margin improvement enhances cash generation potential per project, supports reinvestment in operations, and reduces sensitivity to competitive price pressure long-term.

Negative Factors

Negative Operating Cash Flow

Persistent negative operating and free cash flow indicates a structural gap between reported profits and cash generation, raising liquidity risk. For an EPC firm, weak cash conversion increases reliance on advances or external funding and can constrain ability to scale or absorb project delays.

Thin Net Profit Margins

Thin net margins despite revenue growth suggest ongoing pressure from fixed-price contracts, cost overruns or limited pricing power. This restricts retained earnings for capex and working capital, making long-term resilience dependent on continued operational improvements.

Leverage Exposure

A 23.8% debt-to-equity ratio coupled with weak cash flows raises refinancing and interest coverage risk if project cash conversion falters. For capital-intensive EPC projects, leverage can amplify downturns and limit flexibility to bid competitively without additional funding.

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 primarily makes money by executing projects under EPC/turnkey contracts and related project delivery agreements. Under this model, revenue is recognized from contract value as the company meets contract milestones or achieves progress on project execution (exact accounting method and timing details are null). Key revenue streams generally include: (1) EPC contract revenue, which bundles engineering services, procurement management and construction/installation into a single contract price; (2) Engineering and project management services, where fees may be billed based on deliverables, time-and-materials, or milestone payments (specific billing structures are null); and (3) Commissioning and handover-related activities, which may be linked to performance guarantees and completion certificates (specific terms are null). Profitability is driven by the spread between the fixed/negotiated contract price and the company’s execution costs—materials and equipment procured, subcontractor costs, labor, logistics, and site overheads—meaning cost control, procurement efficiency, and schedule adherence materially affect margins. Cash inflows are typically supported by customer advances, milestone-based payments, and retention released upon completion, while working-capital needs depend on the gap between procurement/construction spending and customer collections (company-specific working capital profile is null). Information on significant partnerships, major customers, or sector-wise revenue concentration is null.

SEPC Limited Financial Statement Overview

Summary

Moderate fundamentals: revenue and gross margin trends are improving and the equity base is solid, but thin net margins and persistently negative operating/free cash flow create meaningful profitability and liquidity risk.

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	6.91B	5.98B	5.61B	3.79B	3.29B	5.80B
Gross Profit	1.51B	1.25B	937.11M	597.96M	360.24M	224.40M
EBITDA	937.64M	850.46M	798.46M	989.65M	-994.13M	-661.02M
Net Income	393.14M	248.40M	227.84M	-49.04M	-2.64B	-1.79B
Balance Sheet
Total Assets	29.35B	23.87B	22.09B	20.02B	22.23B	24.16B
Cash, Cash Equivalents and Short-Term Investments	2.35B	511.08M	305.98M	353.07M	73.18M	48.02M
Total Debt	3.65B	3.58B	4.55B	4.09B	9.81B	8.36B
Total Liabilities	10.52B	8.79B	9.97B	9.14B	14.84B	14.11B
Stockholders Equity	18.81B	15.06B	12.10B	10.86B	7.38B	10.04B
Cash Flow
Free Cash Flow	-1.48B	-1.33B	-1.21B	207.66M	-720.05M	-562.07M
Operating Cash Flow	-1.48B	-1.33B	-1.21B	209.05M	-719.94M	-498.92M
Investing Cash Flow	13.93M	37.25M	-239.09M	124.81M	10.25M	210.86M
Financing Cash Flow	1.58B	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: Positive
• 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 6.71, above the 50-day MA of 8.02, and below the 200-day MA of 10.82, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 22.93 is Positive, neither overbought nor oversold. The STOCH value of 9.50 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	₹20.60B	23.35	―	3.64%	-8.09%	-12.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NILKAMAL	61 Neutral	₹18.24B	20.37	―	1.43%	12.40%	-9.69%
KCP	59 Neutral	₹17.84B	37.48	―	0.14%	-6.76%	-31.51%
SEPC	54 Neutral	₹7.85B	31.63	―	―	8.69%	51.66%
WEL	50 Neutral	₹18.04B	893.07	―	0.07%	4.28%	32.37%
HIMATSEIDE	43 Neutral	₹9.88B	46.69	―	0.21%	-7.55%	-30.11%

SEPC Limited Corporate Events

SEPC Hit by Twin Downgrades as CRISIL and Infomerics Cut Ratings to ‘D’

SEPC Limited has disclosed that two major credit rating agencies, CRISIL Ratings and Infomerics Valuation and Rating, have sharply downgraded the company’s long-term and short-term bank facilities to the lowest ‘D’ grade. These downgrades, from previous BB+/Negative and A4+ categories, signal heightened concerns over the firm’s creditworthiness and could significantly constrain its access to bank funding and increase borrowing costs, posing challenges for liquidity management and stakeholder confidence.

Both CRISIL and Infomerics now classify SEPC’s bank facilities as being in default or near-default category, highlighting a material deterioration in the company’s perceived ability to meet its financial obligations. The move places the company under closer scrutiny from lenders and investors, and may force SEPC to renegotiate terms with banks, pursue recapitalisation measures, or adjust its operating strategy to stabilise its financial position.

SEPC Discloses Cancellation of Key Letter of Intent by TCIL

SEPC Limited has disclosed that Telecommunications Consultants India Limited has cancelled a previously issued Letter of Intent, which had been communicated to the company on 7 February 2026. The loss of this prospective contract may impact SEPC’s near-term project pipeline, and the company has said it is taking appropriate steps and will update exchanges on any material developments in line with disclosure regulations.

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.