SEPC Ltd Stock Falls to 52-Week Low of Rs.7.62 Amidst Continued Downtrend

Recent Price Movement and Market Context

On 26 Feb 2026, SEPC Ltd’s stock price touched Rs.7.62, the lowest level in the past year, reflecting persistent selling pressure. This decline comes despite a broader market environment where the Sensex opened positively, gaining 142.71 points initially, before retreating by 170.17 points to close marginally lower at 82,248.61, down 0.03%. The Sensex remains within 4.75% of its 52-week high of 86,159.02, indicating relative market resilience compared to SEPC’s performance.

The stock’s current trading levels are below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish trend. This technical weakness aligns with the stock’s underperformance over the past year, where it has delivered a negative return of 46.24%, starkly contrasting with the Sensex’s positive 10.25% gain over the same period.

Fundamental Assessment and Ratings

SEPC Ltd’s fundamental metrics continue to reflect challenges in long-term financial strength. The company’s average Return on Capital Employed (ROCE) stands at a modest 1.39%, indicating limited efficiency in generating returns from its capital base. Net sales growth over the last five years has averaged 8.80% annually, a figure that suggests subdued expansion relative to sector peers.

Debt servicing capacity remains a concern, with the average EBIT to interest ratio at a low 0.30, highlighting the company’s constrained ability to comfortably cover interest expenses from operating earnings. These factors contribute to the stock’s current Mojo Grade of Sell, a downgrade from its previous Strong Sell rating as of 2 Dec 2025, with a Mojo Score of 37.0. The market capitalisation grade is rated at 3, reflecting the company’s relatively modest size within the construction sector.

Long-Term and Recent Performance Trends

Over the past three years, SEPC Ltd has consistently underperformed the BSE500 index, with negative returns recorded over 3 years, 1 year, and the last three months. This sustained underperformance highlights the stock’s difficulty in regaining investor confidence and market momentum.

Despite the weak price performance, the company reported a notable increase in net profit of 80.24% in the December 2025 quarter, accompanied by a significant rise in Profit Before Tax excluding other income (PBT LESS OI) to Rs.17.05 crores, representing a growth of 642.1% compared to the previous four-quarter average. Net sales for the quarter reached a record Rs.340.97 crores, the highest in recent periods.

Additionally, the company’s debt-equity ratio at half-year stands at a low 0.19 times, indicating a conservative capital structure. The ROCE for the recent period improved to 2.4, and the enterprise value to capital employed ratio is an attractive 0.8, suggesting valuation levels that are discounted relative to historical averages and peer companies.

Valuation and Profitability Metrics

While the stock price has declined sharply, the company’s profitability metrics show some improvement. Over the past year, profits have increased by 55%, resulting in a Price/Earnings to Growth (PEG) ratio of 1. This suggests that the stock’s valuation is aligned with its earnings growth, albeit at a lower absolute price level.

SEPC Ltd’s 52-week high was Rs.17.45, indicating that the current price of Rs.7.62 represents a decline of more than 56% from its peak. This wide gap underscores the extent of the stock’s correction over the last twelve months.

Sector and Market Comparison

Within the construction sector, SEPC Ltd’s recent underperformance contrasts with broader market trends. The Sensex, despite some volatility, remains near its 52-week high and trades above its 200-day moving average, signalling overall market strength. SEPC’s relative weakness is further emphasised by its trading below all major moving averages, a technical indicator of sustained downward momentum.

The company’s market capitalisation grade of 3 reflects its mid-tier size within the sector, but its financial metrics and stock performance place it in a less favourable position compared to peers.

Summary of Key Metrics

To summarise, SEPC Ltd’s stock has reached a 52-week low of Rs.7.62 after a three-day losing streak and a year-long return of -46.24%. The company’s fundamental indicators show modest growth in sales and profits but remain constrained by low capital efficiency and limited debt servicing capacity. The stock’s valuation appears discounted relative to peers, supported by improved profitability metrics in recent quarters.

Market conditions and technical indicators currently reflect a cautious stance on the stock, with the Mojo Grade at Sell and a recent downgrade from Strong Sell. The construction sector’s broader trends and the Sensex’s relative strength provide a contrasting backdrop to SEPC Ltd’s price movements.

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