Key Events This Week
2 Feb: Stock opens at Rs.225.30, up 1.05% despite Sensex decline
3 Feb: Strong rally with 7.41% gain as Sensex rebounds
5 Feb: Q3 FY26 results reveal profit turnaround, stock surges 9.61%
6 Feb: Very positive quarterly financial performance confirmed, stock closes at Rs.258.00
2 February: Positive Start Amid Market Weakness
Semac Construction began the week on a firm footing, closing at Rs.225.30, up 1.05% despite the Sensex falling 1.03% to 35,814.09. This early resilience suggested investor interest in the stock ahead of the company’s quarterly results, setting the tone for a strong week.
3 February: Strong Rally as Market Recovers
The stock surged 7.41% to Rs.242.00 on 3 February, outperforming the Sensex’s 2.63% gain. Although volume was relatively low at 92 shares, the price action reflected growing optimism, possibly in anticipation of the upcoming quarterly earnings announcement. The stock’s outperformance indicated selective buying interest amid a recovering broader market.
4 February: Steady Gains on High Volume
On 4 February, Semac Construction added a further 0.41% to close at Rs.243.00, supported by a significant volume increase to 3,574 shares. The Sensex also advanced 0.37%, closing at 36,890.21. The steady gains and elevated volume suggested accumulation ahead of the earnings release, with investors positioning for potential positive surprises.
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5 February: Profit Turnaround Spurs 9.61% Surge
The company reported a significant profit turnaround in its Q3 FY26 results, which was met with a strong market reaction. Semac Construction’s stock jumped 9.61% to Rs.266.35 on 5 February, despite the Sensex declining 0.53%. The quarterly results revealed a net sales increase of 47.97% to ₹116.26 crores over the previous comparable period, alongside an operating profit to net sales ratio of 2.58%, the highest in recent quarters. Profit before depreciation, interest, and taxes (PBDIT) reached ₹1.52 crores, while net profit after tax (PAT) peaked at ₹1.40 crores with an EPS of ₹4.49. These figures marked a clear improvement in operational efficiency and profitability, driving investor confidence.
6 February: Very Positive Quarterly Performance Confirmed
On 6 February, Semac Construction confirmed its very positive quarterly financial performance amidst challenging market conditions. The stock closed at Rs.258.00, down 3.13% from the previous day’s high but still reflecting a strong weekly gain. The company’s cash and cash equivalents surged to ₹63.20 crores, providing a robust liquidity buffer, although the debt-equity ratio rose to 0.66 times. Non-operating income accounted for 121.62% of profit before tax, highlighting some reliance on non-core earnings. The operating profit to interest coverage ratio improved to 1.05 times, signalling better capacity to service debt. Despite these positives, the stock remains well below its 52-week high of Rs.567.00, underscoring the need for cautious optimism.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.225.30 | +1.05% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.242.00 | +7.41% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.243.00 | +0.41% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.266.35 | +9.61% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.258.00 | -3.13% | 36,730.20 | +0.10% |
Key Takeaways
Positive Signals: Semac Construction’s 15.72% weekly gain significantly outpaced the Sensex’s 1.51% rise, driven by strong revenue growth of 47.97% and record-high operating profit margins. The company’s net profit after tax and EPS reached recent peaks, supported by improved operational efficiency and a robust cash position of ₹63.20 crores. The operating profit to interest coverage ratio also improved, indicating enhanced debt servicing capacity.
Cautionary Notes: Despite the encouraging financials, the company’s debt-equity ratio increased to 0.66 times, signalling higher leverage. Additionally, non-operating income accounted for over 120% of profit before tax, raising questions about earnings sustainability. The stock remains far below its 52-week high, reflecting longer-term underperformance relative to the Sensex and sectoral headwinds in construction.
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Conclusion: Mixed Yet Improving Outlook
Semac Construction Ltd’s weekly performance reflects a company on a recovery path, with strong quarterly results signalling improved revenue growth, margin expansion, and profitability. The stock’s 15.72% gain this week, far exceeding the Sensex’s 1.51%, underscores renewed investor interest. However, elevated leverage and reliance on non-operating income temper the outlook, suggesting that while operational fundamentals are strengthening, caution remains warranted given the construction sector’s cyclical risks and the stock’s historical volatility.
The upgrade in the company’s Mojo Grade to Strong Sell reflects this balanced perspective, recognising progress while signalling the need for continued vigilance in monitoring financial and market developments.
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