SEPC Ltd Stock Analysis

BSE: 532945 | NSE: SEPC | Engineering - Construction | Small Cap

BSE Share Price 29-Sep-2023 13:05
13.41 0.00 (0.00%)

DeciZen - Make an Informed Decision on SEPC

Overall Rating

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

SEPC Price Chart

P/E Ratio (SA):
58.33
Market Cap:
1,839.1 Cr.
52-wk low:
6.3
52-wk high:
15.9
Bole Toh?

1. Is SEPC Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that SEPC Ltd is a below average quality company.

2. Is SEPC Ltd undervalued or overvalued?

The key valuation ratios of SEPC Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is SEPC Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of SEPC Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of SEPC:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
SEPC Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % -16.8%-2.1%0.9%3.1%4.5%5.4%-0%-5.1%-9.1%2.1%-
Value Creation Index NANA-0.9-0.8-0.7-0.6-1.0-1.4-1.7-0.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 660548548520615741681532303379463
YoY Gr. Rt. %--17%-0%-5.1%18.4%20.4%-8.1%-21.9%-43.1%25.1%-
Adj EPS -131.5-29.1-5.1-1.60.10.3-0.8-1.9-2.6-0.10.2
YoY Gr. Rt. %-NANANANA200%-348.5%NANANA-
BVPS (₹) -58.6-27.511.81212.612.912.110.27.78.28.3
Adj Net Profit -586-253-169-15010.731.8-79.8-183-249-13.332
Cash Flow from Ops. -499-298-151-48.666.62649.3-46.8-69.921.2-
Debt/CF from Ops. -4.6-7.1-13-17.3122.573.3-17.9-1419.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -6%-9.2%-17.8%25.1%
Adj EPS NA-198.1%NANA
BVPSNA-8.2%-12.1%7.2%
Share Price -8.1% 5.3% 56.3% 50.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on Equity % -251.1-302-65.2-190.92.6-6.6-16.8-28.6-1.52.8
Op. Profit Mgn % -51.9-12.25.21.46.29.58.5-11.4-6.8-14.4-8.9
Net Profit Mgn % -88.7-46.1-30.9-28.91.84.3-11.7-34.4-82.2-3.56.8
Debt to Equity 16.534.250.80.70.50.60.81.30.4-
Working Cap Days 1,5891,5921,8041,7201,2281,0181,0381,2361,9601,4010
Cash Conv. Cycle 28110510517715368661011401000

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 2.80%

Debt to equity has declined versus last 3 years average to 0.37

Sales growth is good in last 4 quarters at 63.77%

Sales growth has been subdued in last 3 years -17.76%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - SEPC Ltd.

Standalone Consolidated
TTM EPS (₹) 0.2 0.2
TTM Sales (₹ Cr.) 463 463
BVPS (₹.) 8.3 8.3
Reserves (₹ Cr.) -232 -230
P/BV 1.61 1.61
PE 58.33 59.57
From the Market
52 Week Low / High (₹) 6.27 / 15.90
All Time Low / High (₹) 1.95 / 373.16
Market Cap (₹ Cr.) 1,839
Equity (₹ Cr.) 1,371.4
Face Value (₹) 10
Industry PE 36.4

Management X-Ray of SEPC :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *64.4864.4864.4864.4864.4864.4828.6228.620.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of SEPC

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

SEPC Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of SEPC on 29-Sep-2023 13:05 is : 13.41.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 29-Sep-2023 13:05 the market cap of SEPC stood at ₹ 1,839.1.
The latest PE ratio of SEPC as of 29-Sep-2023 13:05 is 58.33.
The latest PB ratio of SEPC as of 29-Sep-2023 13:05 is 1.61
The 52-week high of SEPC is ₹ 15.90 and the 52-week low is ₹ 6.27.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of SEPC is ₹ 462.9 ( Cr.) .

About SEPC Ltd

Shriram EPC is an associate of the multi billion dollar Shriram Group, headquartered in Chennai, India. The Group, established in the 1970s, is now one of the largest Financial Services Networks in India having substantial interest in truck and consumer finance. The Group has diversified into Insurance, Pharmaceuticals, Automobile Components, Software, Property Development and Project engineering.

Shriram EPC was incorporated on June 12, 2000 for the purpose of carrying on the business of engineering, procurement and construction, and now provides a single point solution to engineering challenges offering multi-disciplinary design, engineering, procurement, construction and project management services.

The Company began its operations in the biomass power plants business in December 2000 with the execution of the first biomass power plant project in Andhra Pradesh. The biomass power plants business is engaged in the design, engineering and construction of thermal biomass-based power plants.

In 2004, the company commenced the business of erection, testing and commissioning of wind electric generators and entered into a joint operation agreement with Hamon Thermopack Engineers, a subsidiary of Hamon Thermal Europe SA and Hamon (Netherlands) B.V to carry out projects regarding cooling tower solutions.

The company commenced its municipal services business of water and wastewater management and water distribution systems and pipe rehabilitation in 2004. The municipal services business principally focuses on the design and implementation of turnkey design-build environmental projects for water and wastewater distribution, water and sewage treatment and pipe rehabilitation.The company works on a project to project basis with Chevalier Pipe Technologies Limited, whereby  it has been granted license to use its rib loc technology in India

On January 16, 2007 the company entered into a Joint Venture Agreement with Leitner B.V., Netherlands to set up Leitner Shriram Manufacturing, an Associate company formed for the purposes of manufacturing of megawatt class wind turbines and components. In the same year the company entered into a memorandum of understanding on August 28, with Bessemer Venture Partners Trust for power generation through renewable sources.

The company mainly works under these divisions

  • Wind Energy - Shriram EPC’s Wind Turbine Generator (WTG) business has been focused on developing, manufacturing, erecting and commissioning 250KW WTGs, and is currently developing megawatt-class WTGs through Leitner Shriram Manufacturing, an associate company.
  • EPC - (engineering, procurement, construction) Businesses- The EPC business of the company  is focused on providing integrated turnkey solutions for biomass-based power plants, mini hydel plants, process and metallurgy plants (including thermal power plants), water and wastewater treatment plants, water & sewer infrastructure and pipe rehabilitation.
  • Process & Metallurgy- They offer expertise to Plants and Projects in Process & Metallurgical related jobs that include Rolling Mills, Blast Furnace related equipment and systems, Sinter Plant equipment and systems, Coke Oven and Coke Oven related equipment, Gas Cleaning Plants, Aluminum refining, Copper smelting, Cement plants, Cooling Towers, Air Pollution Control units and associated equipment for Ferrous as well as Non Ferrous metallurgy.
  • Municipal Services- Shriram EPC focuses on Water and Water related systems include Water Treatment Plants, Effluent  and Sewage Treatment Plants, Water Pumping, Transmission and Distribution Systems. The Company is also a pioneer in India in Trenchless Technologies for the cleaning and Rehabilitation of underground utility pipes in both Municipal and Industrial Sectors.

Milestones Achieved   

  • 2013 SEPC certified as an IMS accredited organisation by TUV NORD
  • 2009 - SEPC make enter into solar power, mines and mineral processing business
  • 2009 - SEPC moves into new strategically located offices in Chennai, Delhi and Kolkata
  • 2009- The company implements SAP ERP.
  • 2008- Shriram EPC acquires 55% stake in Blackstone Technology Group Pvt. Ltd.
  • 2007- Execution of JV with Leitner Tech for manufacturing & marketing of megawatt class wind turbines. Foray into Air pollution control  with Hamon through JV.
  • 2006- Certification by DEWI OCC for designing & manufacturing 250kw wind turbine.  
  • 2005 – Investment by ChrysCap.
  • 2004- Acquisition of the cooling towers business of Shriram Tower Tech ltd.     
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