Semac Construction Limited

Industrials — Engineering & Construction · NSE

₹217.98−₹5.77 (−2.58%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Semac Construction Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Semac Construction Limited provides integrated design, engineering, procurement, construction, and consultancy services for commercial and industrial projects in India. It offers architectural, engineering, and construction management services.

IndustryEngineering & Construction

SectorIndustrials

Employees177

Annual revenue₹243 Cr

How does it make money?

Turns over ₹243 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 177 employees supports ₹1.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.37 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -25% while net margin moved -48% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-25%

Margin effect-48%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 9.3% a year
✗ Profit has declined at 26.9% a year
✗ Latest-year revenue growth of -41.0% is below the longer-term trend — momentum is fading
✗ Profit fell 62.7% in the latest year

Quality vs. Valuation

Company Quality

37/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

69/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

10.1x

3Y Median

8.4x

40 monthly readings · mean 15.1x · range 3.8x–57.4x

Sector Median

30.1x

median of 3 sector peers

⚠️Current valuation is approximately 21% above its 3y median of 8.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 66% below the peer median of 30.1x.

vs. its own history

Expensive

8.4x median over 40 months · +21%

vs. sector peers

Cheap

30.1x median of 3 peers · -66%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.2% to 8.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.9% to 13.0% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 395% over 3 years, from ₹6 Cr to ₹28 Cr.
🟡Profit is decliningFinancial
Net profit is down 61% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 3.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 66% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹24 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 9.4% to 5.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 21% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 16.2% to 8.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 3%✓ 5.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹24 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 10%✓ 13.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹68 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.1x

Cheap

Cheap against the generic band

P/B Ratio

0.87x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹21.53

Profitable

Profitable on a per-share basis

ROE

8.8%

Moderate

Moderate capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

-41.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-62.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹24 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.3%

Weak

Thin margins leave little room for error

Net Margin

3.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.50

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

242.3 / 271.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹325 Cr	₹127 Cr	₹173 Cr	₹243 Cr	-9.3%
EBITDA	₹31 Cr	-₹30 Cr	-₹0 Cr	₹13 Cr	-24.3%
EBITDA Margin	9.4%	-23.7%	-0.1%	5.5%	—
PAT (Net Profit)	₹18 Cr	-₹32 Cr	-₹6 Cr	₹7 Cr	-26.9%
EPS	₹58.87	₹-102.29	₹-18.73	₹23.34	-26.5%
ROE	16.2%	-40.7%	-8.0%	8.8%	—
ROCE	22.9%	-35.7%	-2.2%	13.0%	—
Total Debt	₹6 Cr	₹19 Cr	₹41 Cr	₹28 Cr	+70.4%
Free Cash Flow	-₹0 Cr	-₹20 Cr	-₹3 Cr	₹24 Cr	—

🔴 Revenue has shrunk at 9.3% a year over 3 years.

🔴 EBITDA has shrunk at 24.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.4% to 5.5% over 3 years (-3.9 pts).

🔴 PAT (Net Profit) has shrunk at 26.9% a year over 3 years.

🔴 EPS has shrunk at 26.5% a year over 3 years.

🔴 ROE has fallen from 16.2% to 8.8% over 3 years (-7.4 pts).

🔴 ROCE has fallen from 22.9% to 13.0% over 3 years (-9.8 pts).

🔴 Total Debt has grown at 70.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹24 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹205 Cr

Total Liabilities

₹118 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹24 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.4%

Corporate Actions

Ex-Dividend Date

19 Oct 2023

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 mixed5 general

Semac Construction Share Price Analysis

Kalkine India, 12 Oct

Semac Construction Share Price Target 2026: Rs 425 Analyst Forecast

Univest, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Semac Construction shares FY26 annual report web link ahead of AGM

scanx.trade, 01 Sept

Semac Construction Share Price Forecast to 2030

Univest, 27 Jul

Semac Construction re-appoints Harivansh Dalmia as WTD for five years

scanx.trade, 14 Aug

Semac Construction (BSE:505368) - Stock Analysis

Simply Wall Street, 28 May

Watch Items

Revenue growth is negative (-41.0%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑