SEPC Limited (SEPC) AI Stock Analysis

SEPC Limited

(NSE:SEPC)

Select Model

Rating:54.5Neutral

Price Target:INR 5.00▲(3.73% Upside)

Action:reiterated

Date:10/13/26

The company's financial health is a mixed picture, with strong revenue growth and a robust balance sheet contrasted by severe cash burn and declining margins. This is the most significant factor. Technicals show a stock in a short-term recovery within a longer-term downtrend. The high P/E ratio adds a layer of valuation risk, making the stock unattractive from a value perspective.

Positive Factors

Revenue RecoveryThe strong FY2026 revenue rebound indicates that SEPC has regained project activity and execution scale after weaker periods. Sustained top-line expansion can improve operating leverage, deepen client relationships, and provide a larger base from which the EPC business can rebuild earnings over the coming quarters.

Negative Factors

Negative Cash GenerationDeeply negative operating cash flow despite reported profits signals that earnings are not yet converting into cash. Persistent cash absorption can increase funding dependence, constrain investment capacity, and leave SEPC more exposed to execution delays or slower collection of project-related receivables.

SEPC Limited (SEPC) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 8.33B
Dividend Yield: ―
Average Volume (3M): 1.15M
Price to Earnings (P/E): 36.1
Beta (1Y): 2.13
Revenue Growth: 80.42%
EPS Growth: -31.37%
Country: India
Employees: 224
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

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 no...

How the Company Makes Money

SEPC makes money primarily by winning and executing project contracts and recognizing revenue as it delivers contractual milestones and/or progresses work under those contracts. Its key revenue streams generally come from (i) EPC contract revenues fo...

SEPC Limited Financial Statement Overview

Summary

Strong revenue growth and a healthy balance sheet are offset by significant negative cash flow and narrowing margins. The income statement and balance sheet are solid, but cash conversion is a major concern.

Income Statement

65Positive

Balance Sheet

85Very Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	11.26B	10.54B	5.98B	5.61B	3.79B	3.29B
Gross Profit	1.25B	1.30B	1.25B	937.11M	597.96M	360.24M
EBITDA	953.22M	1.08B	850.46M	798.46M	989.65M	-994.13M
Net Income	259.40M	535.38M	248.40M	227.84M	-49.04M	-2.64B
Balance Sheet
Total Assets	0	30.93B	23.87B	22.09B	20.02B	22.23B
Cash, Cash Equivalents and Short-Term Investments	760.47M	760.47M	511.08M	305.98M	353.07M	73.18M
Total Debt	0	3.53B	3.58B	4.55B	4.09B	9.81B
Total Liabilities	-19.21B	11.72B	8.79B	9.97B	9.14B	14.84B
Stockholders Equity	19.21B	19.19B	15.06B	12.10B	10.86B	7.38B
Cash Flow
Free Cash Flow	-1.48B	-2.81B	-1.33B	-1.21B	207.66M	-720.05M
Operating Cash Flow	-1.48B	-2.80B	-1.33B	-1.21B	209.05M	-719.94M
Investing Cash Flow	13.93M	-87.71M	37.25M	-239.09M	124.81M	10.25M
Financing Cash Flow	1.58B	3.08B	1.18B	1.30B	-61.42M	683.87M

SEPC Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price4.82

Price Trends

50DMA5.27Negative

100DMA5.84Negative

200DMA6.69Negative

Market Momentum

MACD-0.12Positive

RSI39.63Neutral

STOCH22.79Neutral

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 4.82 is below the 20-day moving average (MA) of 5.12, below the 50-day MA of 5.27, and below the 200-day MA of 6.69, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 22.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SEPC.

SEPC Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SEPC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:GPTINFRA	68Neutral	INR 14.19B	14.38	―	2.45%	1.62%	12.27%
IN:SRM	62Neutral	INR 9.35B	7.90	―	―	75.33%	86.76%
IN:SPMLINFRA	60Neutral	INR 10.86B	12.10	―	―	37.86%	57.21%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SEPC	55Neutral	INR 7.83B	36.06	―	―	80.42%	-31.37%
IN:BLKASHYAP	48Neutral	INR 11.77B	2607.00	―	―	21.77%	-96.12%
IN:RIIL	47Neutral	INR 10.09B	85.43	―	0.52%	-23.65%	-1.90%

* General Sector Average

Performance Comparison

IN:SEPC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SEPC	SEPC Limited	4.82	-6.20	-56.26%
IN:BLKASHYAP	B.L. Kashyap & Sons Ltd.	52.20	-7.11	-11.99%
IN:GPTINFRA	GPT Infraprojects Limited	112.30	7.82	7.49%
IN:RIIL	Reliance Industrial Infrastructure Limited	668.40	-224.13	-25.11%
IN:SPMLINFRA	SPML Infra Limited	128.00	-105.20	-45.11%
IN:SRM	SRM Contractors Ltd.	407.60	-187.90	-31.55%

SEPC Limited Corporate Events

SEPC Faces Cancellation of Seven Jharkhand Water Supply Contracts, Explores Legal Remedies

Oct 25, 2026

SEPC Limited has disclosed that seven rural water supply contracts in Jharkhand, previously awarded by the state Department of Drinking Water and Sanitation, have been rescinded by the respective divisional authorities. These projects, part of legacy...

SEPC wins ₹854.57 crore SAIL order, boosting industrial EPC portfolio

Aug 6, 2026

SEPC Limited has secured a Letter of Acceptance from Steel Authority of India’s IISCO Steel Plant in Burnpur for executing the balance-of-plant, including civil and structural works, for the Pellet Plant Package-2 supporting SAIL’s 4.08 m...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 13, 2026

SEPC Limited AI Stock Analysis