Recent Price Movement and Market Context
On the trading day, Semac Construction Ltd’s stock touched an intraday low of Rs.230, representing a 3.18% decline from the previous close. The share price has been on a downward slope for three consecutive sessions, cumulatively falling by 16.13% over this period. This underperformance is more pronounced when compared to the construction sector, where Semac lagged by 2.76% on the day.
The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This technical positioning underscores the challenges the stock faces in regaining upward momentum.
Meanwhile, the broader market environment has been mixed. The Sensex opened lower at 81,947.31, down 619.06 points or 0.75%, and was trading at 82,116.39 by midday, a 0.54% decline. Despite this, the Sensex remains within 4.92% of its 52-week high of 86,159.02. The index’s 50-day moving average remains above its 200-day moving average, indicating a generally positive medium-term trend for the market, contrasting with Semac’s weaker performance.
Long-Term Performance and Valuation Metrics
Over the past year, Semac Construction Ltd’s stock has delivered a negative return of 17.81%, significantly underperforming the Sensex, which posted a 6.97% gain during the same period. The stock’s 52-week high was Rs.567, highlighting the extent of the decline to the current low of Rs.230.
From a fundamental perspective, the company’s long-term financial health has been under strain. Operating profits have contracted at a compound annual growth rate (CAGR) of -159.97% over the last five years, indicating a sharp deterioration in core earnings capacity. This weak growth trajectory has contributed to the stock’s subdued valuation and investor sentiment.
The company’s ability to service its debt is also a concern, with an average EBIT to interest coverage ratio of just 0.68. This ratio suggests that earnings before interest and tax are insufficient to comfortably cover interest expenses, raising questions about financial stability.
Profitability metrics further reflect challenges, with an average return on equity (ROE) of 5.79%, signalling modest returns generated on shareholders’ funds. This level of profitability is below industry norms and may weigh on investor confidence.
Our latest weekly pick is live! This Large Cap from Diamond & Gold Jewellery comes with clear entry and exit targets. See the detailed report with target price now!
- - Clear entry/exit targets
- - Target price revealed
- - Detailed report available
Risk Profile and Profitability Trends
The stock’s risk profile is elevated relative to its historical valuations. Despite the negative returns over the past year, the company’s profits have increased by 101.8%, resulting in a price-to-earnings-to-growth (PEG) ratio of 1.1. This indicates that while earnings growth has been positive recently, it has not translated into share price appreciation.
Semac Construction Ltd has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This consistent underperformance highlights the stock’s challenges in keeping pace with broader market and sector trends.
Nevertheless, the company has reported positive results for the last three consecutive quarters. Net sales for the latest six-month period stood at Rs.108.88 crore, reflecting a growth rate of 103.51%. Profit after tax (PAT) for the same period was Rs.1.04 crore, marking an improvement. Additionally, cash and cash equivalents reached a high of Rs.632 crore, indicating a strong liquidity position.
Shareholding and Market Capitalisation
The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction. The company holds a Market Cap Grade of 4, reflecting its micro-cap status within the construction sector.
Semac Construction Ltd’s Mojo Score currently stands at 17.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 8 Dec 2025. This grading reflects the company’s weak long-term fundamentals and elevated risk profile.
Considering Semac Construction Ltd? Wait! SwitchER has found potentially better options in Construction and beyond. Compare this micro-cap with top-rated alternatives now!
- - Better options discovered
- - Construction + beyond scope
- - Top-rated alternatives ready
Summary of Key Financial Indicators
Semac Construction Ltd’s financial indicators paint a picture of subdued growth and profitability. The negative CAGR in operating profits over five years contrasts with recent improvements in sales and PAT, suggesting a complex financial landscape. The company’s liquidity position is robust, supported by Rs.632 crore in cash and equivalents, which may provide some cushion amid market pressures.
The stock’s trading below all major moving averages and its recent 52-week low of Rs.230 reflect the market’s cautious stance. While the Sensex and construction sector indices show relative strength, Semac’s performance remains subdued, underscoring the challenges faced by the company within its industry context.
Overall, the stock’s current valuation and financial metrics indicate a cautious outlook, with the company’s fundamentals and market performance continuing to be closely monitored by market participants.
Unlock special upgrade rates for a limited period. Start Saving Now →
