Semac Construction Ltd Stock Hits 52-Week Low Amidst Continued Underperformance

Intraday Performance and Volatility

On the day, Semac Construction Ltd’s share price dropped by 9.65%, touching an intraday low of Rs.232.2. This decline was notably steeper than the construction sector’s performance, with the stock underperforming the sector by 9.88%. The share exhibited high volatility, with an intraday volatility of 5.64% calculated from the weighted average price, indicating significant price fluctuations throughout the trading session.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward momentum. This technical positioning suggests that the stock has been facing persistent selling pressure over multiple time frames.

Market Context and Comparative Performance

While Semac Construction Ltd’s shares have been under pressure, the broader market showed relative stability. The Sensex opened flat at 82,335.94 points and was trading marginally lower at 82,306.67 points during the session, remaining just 4.68% below its 52-week high of 86,159.02. Mid-cap stocks led the market gains, with the BSE Mid Cap index rising by 0.21%, contrasting with Semac’s underperformance.

Over the past year, Semac Construction Ltd’s stock has declined by 27.14%, a stark contrast to the Sensex’s positive return of 7.56% over the same period. The stock’s 52-week high was Rs.567, highlighting the extent of the recent price erosion.

Fundamental Weaknesses and Valuation Concerns

Semac Construction Ltd’s current Mojo Score stands at 17.0, with a Mojo Grade of Strong Sell, upgraded from a previous Sell rating on 8 Dec 2025. This downgrade reflects deteriorating fundamentals and heightened risk perceptions. The company’s market capitalisation grade is rated 4, indicating a relatively small market cap within its peer group.

The company’s long-term financial performance has been underwhelming, with a compounded annual growth rate (CAGR) of operating profits declining by 159.97% over the past five years. This negative growth trajectory has weighed heavily on investor sentiment and valuation.

Debt servicing capacity remains a concern, with an average EBIT to interest ratio of just 0.68, signalling limited earnings buffer to cover interest expenses. Additionally, the company’s average return on equity (ROE) is 5.79%, indicating modest profitability relative to shareholders’ funds.

Despite the negative returns, the company’s profits have shown some improvement recently, with a 101.8% increase in profits over the past year. The price-to-earnings-to-growth (PEG) ratio stands at 1.2, suggesting that the stock’s valuation is somewhat aligned with its earnings growth, though the overall risk profile remains elevated.

Relative Performance Over Multiple Time Frames

Semac Construction Ltd has underperformed the BSE500 index consistently over the last three years, one year, and three months. This persistent underperformance highlights challenges in both the near and long term, contributing to the stock’s current low valuation and price levels.

Recent Financial Results and Liquidity Position

On a positive note, the company has reported positive results for the last three consecutive quarters. Net sales for the latest six months reached Rs.108.88 crores, reflecting a growth rate of 103.51%. Profit after tax (PAT) for the same period was Rs.1.04 crore, indicating a modest profit generation.

Liquidity remains strong, with cash and cash equivalents at a six-month high of Rs.632.00 crores. This sizeable cash reserve provides a buffer for the company’s financial obligations and operational needs despite the subdued profitability.

Shareholding and Ownership Structure

The majority shareholding in Semac Construction Ltd is held by promoters, indicating concentrated ownership. This structure often implies a stable control environment but also places significant responsibility on promoters to steer the company through challenging periods.

Summary of Key Metrics

To summarise, Semac Construction Ltd’s stock has reached a new 52-week low of Rs.232.2, reflecting a decline of 27.14% over the past year. The company’s financial indicators reveal weak long-term growth, limited debt servicing ability, and modest profitability. Despite recent positive quarterly results and a strong cash position, the stock continues to trade below all major moving averages and has underperformed its sector and broader market indices.

The Sensex’s relative strength and mid-cap gains contrast with Semac’s performance, underscoring the stock’s current challenges within the construction sector. Investors and market participants will note the company’s strong promoter holding and recent profit growth, but these factors have yet to translate into sustained share price recovery.

Unlock special upgrade rates for a limited period. Start Saving Now →