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SEPC Ltd

NSE: SEPC BSE: 532945

7.47

(-2.73%)

Tue, 03 Mar 2026, 01:07 pm

SEPC Analysis

dividend

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Pros

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    Cons

    • Unable to calculate sustainability of dividends as Shriram EPC has not reported any payouts.
    • Unable to evaluate Shriram EPC's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate Shriram EPC's dividend against the top 25% market benchmark as the company has not reported any payouts.

    health

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    Pros

    • Shriram EPC is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Shriram EPC is profitable, therefore cash runway is not a concern.
    • Shriram EPC is profitable, therefore cash runway is not a concern.
    • Debt is covered by short term assets, assets are 2.5x debt.
    • Shriram EPC's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (5851.3% vs 53.8% today).
    • Low level of unsold assets.
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    Cons

    • Debt is not well covered by operating cash flow (18.8%, less than 20% of total debt).
    • Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
    • Shriram EPC's level of debt (53.8%) compared to net worth is high (greater than 40%).

    management

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    Pros

    • The tenure for the Shriram EPC board of directors is about average.
    • Thyagarajan's compensation has increased in line with Shriram EPC recently becoming profitable.
    • The average tenure for the Shriram EPC management team is over 5 years, this suggests they are a seasoned and experienced team.
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    Cons

    • Thyagarajan's remuneration is higher than average for companies of similar size in India.

    misc

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    Pros

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      Cons

      • Shriram EPC is not covered by any analysts.
      • Shriram EPC has significant price volatility in the past 3 months.

      past

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      Pros

      • Shriram EPC has delivered over 20% year on year earnings growth in the past 5 years.
      • Shriram EPC has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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      Cons

      • Shriram EPC has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
      • Shriram EPC used its assets less efficiently than the IN Construction industry average last year based on Return on Assets.
      • Shriram EPC has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Shriram EPC has become profitable in the last year making it difficult to compare the IN Construction industry average.

      value

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      Pros

      • Shriram EPC's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Shriram EPC's share price is below the future cash flow value, and at a substantial discount (> 40%).
      • Shriram EPC is good value based on assets compared to the IN Construction industry average.
      • SHRIRAMEPC outperformed the Construction industry which returned -40% over the past year.
      • NSEI:SHRIRAMEPC is up 69.1% outperforming the Construction industry which returned 7.1% over the past month.
      • NSEI:SHRIRAMEPC is up 69.1% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Shriram EPC is overvalued based on earnings compared to the IN Construction industry average.
      • Shriram EPC is overvalued based on earnings compared to the India market.
      • SHRIRAMEPC underperformed the Market in India which returned -14.5% over the past year.

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      Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800