Order Book Or Contract Wins
Expected: CurrentHIGH confidence
What: Order Book Value: ₹10,455 crore
Impact: Multi-year revenue visibility
SEPC Ltd: Is It a Deep Value Opportunity?
AverageSteady Growth
As of , SEPC Ltd (Project Consultancy/Turnkey) has a deep value score of 45/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -42%.
SEPC Ltd Key Facts
- PE Ratio
- 30.2x
- Market Cap
- ₹1,521 Cr
- Value Score
- 45/100
- Margin of Safety
- -35%
- PAT Growth YoY
- +275%
- Revenue Growth YoY
- +156%
- OPM
- 8.0%
PE: Cycle BottomStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
👔Promoter stake down 6.6% this quarter
🏛️DII reducing — stake down 4.5%
💰Trading 35% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
CurrentHIGH
2. Litigation
Q3 FY26MEDIUM
Key Risks
1. Interim attachment of ₹154
HIGH2. Infomerics downgraded ratings to negative due to lower-than-envisaged performanc
MEDIUMSector-Specific Signals
Consolidated Order Book₹10,455 crore
Mining Sector Contribution41%
Attached Receivables₹154.63 crore
Key Numbers
PAT Growth YoY
+275%
Stable
Revenue YoY
+156%
Inflection Up
Operating Margin
8.0%
+500 bps YoY
PE Ratio
30.2
PEG Ratio
1.55
Current Price
₹8
3Y PAT CAGR
+80%
Market Cap
1.5K Cr
Valuation
Significantly OvervaluedWhy Are SEPC Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Litigation
Expected: Q3 FY26MEDIUM confidence
What: Settlement Amount: ₹30.45 crore
Impact: Immediate liquidity
What Are the Key Risks for SEPC Ltd?
Earnings deceleration risks from management commentary
Interim attachment of ₹154
HIGHTrigger: Interim attachment of ₹154.63 crore in trade receivables by Madras High Court due to a decade-old dispute.
Impact: PAT impact: ₹154.63 crore (Receivables attached)
Management view: PWC appointed for financial review; claim covered by indemnity from Twarit.
Monitor: litigation
Infomerics downgraded ratings to negative due to lower-than-envisaged performanc
MEDIUMTrigger: Infomerics downgraded ratings to negative due to lower-than-envisaged performance and delayed international projects.
Management view: Focus on execution and liquidity management.
Monitor: regulatory
What Did SEPC Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹342.07 crore
YoY +114.12%QoQ +36.27%
Revenue growth was driven by accelerated execution of EPC projects and significant new order wins in mining and transportation.
EBITDA
₹29.66 crore
YoY -1.53%Margin 8.67%
EBITDA saw a slight year-on-year decline despite revenue doubling, indicating higher material and construction costs during the quarter.
PAT
₹14.96 crore
YoY +236.62%QoQ +80.28%
PAT growth was significantly aided by a settlement with Hindustan Copper Limited and improved operational controls.
Other Highlights
• Nine-month FY26 revenue of ₹796.89 crore already exceeds full-year FY25 revenue of ₹597.7 crore.
• Material and construction costs rose 52% sequentially to ₹298.24 crore in Q3 FY26.
• Consolidated order book reached a record peak of ₹10,455 crore as of December 31, 2025.
What Sector Metrics Matter for SEPC Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Consolidated Order Book
₹10,455 crore
Why: Driven by fresh orders aggregating ₹5,954 crore during FY26 up to December.
Mining Sector Contribution
41%
Why: Strategic focus on high-value mining infrastructure projects like the MOIL vertical shaft.
Attached Receivables
₹154.63 crore
Why: Interim order by Madras High Court in a decade-old dispute with GPE (India) Ltd.
What Is SEPC Ltd's Management Guidance?
Forward-looking targets from management for Multi-year
Revenue Outlook
Multi-year revenue visibility through expanded order book
Management Tone: BULLISH
How Fast Is SEPC Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +156% | +22% | Inflection Up |
| PAT (Net Profit) | +275% | +80% | Stable |
| OPM | 8.0% | +500 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: SEPC Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is SEPC Ltd's deep value score?
SEPC Ltd has a deep value score of 45/100 (rated Average). This score is calculated from three components
- Earnings Score: 24/40 — measures PAT growth momentum across quarters
- Underperformance Score: 23/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 10/25 — operational quality (margins, revenue growth, valuation)
Is SEPC Ltd fundamentally improving?
SEPC Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +80%
- Previous Quarter PAT Growth (QoQ): -50%
- 2 Quarters Ago PAT Growth (QoQ): +65%
- PAT Acceleration: +7.5pp (profits are accelerating)
- 1 consecutive quarters of positive PAT growth
Why is SEPC Ltd underperforming despite good earnings?
SEPC Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -42%
- 6-Month Return vs Nifty 500: -25%
- 3-Month Return vs Nifty 500: -9%
- Yet average quarterly PAT growth is +32% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for SEPC Ltd?
SEPC Ltd's earnings momentum is Steady — consistent growth.
- PAT QoQ progression: +65% → -50% → +80% (2Q ago → 1Q ago → latest)
- Acceleration: +7.5pp
- PAT YoY Growth: +275%
Is SEPC Ltd undervalued?
SEPC Ltd's valuation metrics
- Price-to-Earnings (PE): 27.8x
- Price-to-Book (PB): 0.8x
- PEG Ratio: 1.6x
- Margin of Safety: -42% (appears overvalued)
What are the revenue and margin trends for SEPC Ltd?
SEPC Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +44%
- Average Quarterly Revenue Growth: +44%
- Revenue Acceleration: -14.1pp
- Latest OPM Change: +3.9pp (margins expanding)
- Average OPM Change: -1.5pp
- Revenue YoY: +156%
What is SEPC Ltd's trailing twelve month (TTM) performance?
SEPC Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹50 Cr
- TTM PAT Growth: +100.0% YoY
- TTM Revenue: ₹898 Cr
- TTM Revenue Growth: +43.0% YoY
- TTM Operating Margin: 8.9%
What sector does SEPC Ltd belong to?
SEPC Ltd key facts
- Sector: Project Consultancy/Turnkey
- Market Cap: ₹1.5K Cr
- Rank in Project Consultancy/Turnkey: #1 by value score
- Overall rank among all deep value stocks: #17
Is SEPC Ltd a good deep value opportunity to study?
SEPC Ltd shows limited deep value signals currently — score is 45/100 (Average). Monitor for improvement.
- Value Score: 45/100 (Average)
- Earnings: Accelerating
- 1Y Underperformance: -42% vs Nifty 500
What is the bull and bear case for SEPC Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
Risk Factors (Bear Case)
- Significant underperformance (-42% vs Nifty 1Y)
- Operating margins contracting
- Appears overvalued despite underperformance
How does the Project Consultancy/Turnkey sector look for deep value?
Project Consultancy/Turnkey deep value sector overview
- 1 deep value stocks in this sector
- Average value score: 45/100
- Avg PAT acceleration: +7.5pp
- Top pick: SEPC Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for SEPC Ltd?
SEPC Ltd has 2 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins
- Litigation
What are the key risks in SEPC Ltd?
SEPC Ltd has 2 key risks worth monitoring
- Interim attachment of ₹154
- Infomerics downgraded ratings to negative due to lower-than-envisaged performanc
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.