SEPC Limited (SEPC) AI Stock Analysis

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SEPC Limited

(NSE:SEPC)

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Rating:51Neutral

Price Target:INR 5.00▼(-7.58% Downside)

Action:reiterated

Date:10/13/26

The score is primarily held back by weak cash generation (deeply negative operating/free cash flow despite positive earnings), which materially raises execution and funding risk. Offsetting this, the company shows strong revenue and profitability recovery and improved leverage. Technicals are mixed (short-term strength but still below longer-term averages), while valuation is a headwind given the high P/E and lack of dividend support.

Positive Factors

Revenue and profit recoveryThe strong revenue rebound and return to positive earnings indicate that SEPC has regained operating traction after earlier losses. If this recovery persists, higher project activity can support a broader earnings base and improve the company’s ability to fund expansion and execution internally.

Negative Factors

Deeply negative cash generationPersistent negative operating and free cash flow means reported profits are not yet converting into cash, increasing reliance on funding to support project execution. Unless working capital improves, this cash mismatch can constrain growth, raise financial pressure, and weaken earnings quality.

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

Market Cap: INR 8.26B
Dividend Yield: ―
Average Volume (3M): 980.36K
Price to Earnings (P/E): 40.6
Beta (1Y): 1.87
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...

SEPC Limited Financial Statement Overview

Summary

Income statement shows a strong rebound (FY2026 revenue up ~53% and profitability improved versus FY2021–FY2022 losses), and the balance sheet looks healthier with lower leverage (debt-to-equity ~0.18 in FY2026). However, cash flow is a major concern: operating and free cash flow are sharply negative in FY2024–FY2026 despite positive net income, raising earnings-quality and execution/working-capital risk.

Income Statement

66Positive

Balance Sheet

74Positive

Cash Flow

28Negative

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 SentimentPositive

Last Price5.41

Price Trends

50DMA5.17Positive

100DMA5.71Negative

200DMA6.55Negative

Market Momentum

MACD-0.02Negative

RSI60.90Neutral

STOCH84.47Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SEPC, the sentiment is Positive. The current price of 5.41 is above the 20-day moving average (MA) of 5.08, above the 50-day MA of 5.17, and below the 200-day MA of 6.55, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 84.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	67Neutral	INR 14.17B	15.26	―	2.40%	3.36%	4.38%
IN:SRM	62Neutral	INR 9.07B	7.83	―	―	75.33%	86.76%
IN:SPMLINFRA	60Neutral	INR 13.36B	14.75	―	―	37.86%	57.21%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:BLKASHYAP	54Neutral	INR 12.56B	2819.00	―	―	21.77%	-96.12%
IN:SEPC	51Neutral	INR 8.47B	40.57	―	―	80.42%	-31.37%
IN:RIIL	47Neutral	INR 10.67B	91.34	―	0.49%	-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	5.41	-5.81	-51.78%
IN:BLKASHYAP	B.L. Kashyap & Sons Ltd.	56.29	0.34	0.61%
IN:GPTINFRA	GPT Infraprojects Limited	114.55	11.88	11.57%
IN:RIIL	Reliance Industrial Infrastructure Limited	715.50	-153.19	-17.63%
IN:SPMLINFRA	SPML Infra Limited	156.20	-52.55	-25.17%
IN:SRM	SRM Contractors Ltd.	403.90	-171.80	-29.84%

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 million tonne...

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