“Design karte hain, returns nahi.”
1. 🛰️ At a Glance
Semac Consultants is an EPC and design firm dabbling in engineering and construction consultancy. Unfortunately, their financial statements look like they were designed by interns from B.Arch who just found out Revit doesn’t work on their laptop. Operating loss, falling margins, and shareholder exits — this one’s been under structural collapse for 2 years.
2. 🎬 Introduction with Hook
“If L&T built skyscrapers, Semac built hope — and lost it.”
They offer full-scale EPC + ASMEPF services (Architectural, Structural, Mechanical, Electrical, Plumbing & Fire Suppression).
But the last 6 quarters?
Losses. Bleeding margins. Negative ROE. And falling promoter holding.
The only thing they’re engineering well: investor confusion.
3. 🏢 Business Model – WTF Do They Even Do?
Semac provides:
- 🏗️ Design + build services for industrial, logistics, and commercial infrastructure
- ⚙️ Full ASMEPF scope (basically turn-key projects)
- 📄 Also owns Semac Construction Technologies (now a 100% subsidiary as of June 2025)
But let’s be honest — with ₹173 Cr full-year sales and ₹6 Cr loss… they need more than AutoCAD skills to stay listed.
4. 📈 Financials – Profit, Margins, ROE
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Sales | ₹173 Cr | ₹127 Cr | ₹325 Cr |
| Net Profit | -₹6 Cr | -₹32 Cr | ₹19 Cr |
| ROE | -7.62% | -8% | 25% |
| OPM | -3% | -27% | 8% |
From ₹325 Cr sales in FY23 to ₹127 Cr in FY24 to ₹173 Cr now, this is not a turnaround — it’s a roundtrip to irrelevance.
5. 💸 Valuation – Cheap, Meh, or Cocaine?
- CMP: ₹507
- Book Value: ₹237
- P/B: 2.14x
- PE: N/A (negative earnings = zero pyaar)
- Market Cap: ₹158 Cr
👉 Fair Value Range (if turnaround succeeds): ₹250–₹325
(Assuming 5% NPM on ₹200 Cr+ sales in future and a P/E of 15)
Right now though? Overvalued until margins stop being allergic to stability.
6. 🍿 What’s Cooking – News, Triggers, Drama
- 🔧 June 2025: Bought out remaining 50% stake in Semac Construction Technologies. Now 100% owned.
- 💔 Promoter holding down from 72.6% to 62.8% in 1 year. 👀
- ❌ Last 5 quarters include 3 large losses due to project delays and cost overruns.
So the “design build” firm is now redesigning its own org chart.
7. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 |
|---|---|
| Borrowings | ₹41 Cr (rising 👎) |
| Reserves | ₹71 Cr (shrinking 💀) |
| Fixed Assets | ₹21 Cr (meh) |
| Total Assets | ₹221 Cr |
They’ve raised some debt to plug operational holes. But unless they plug their margin drain, we’re headed into a structural disaster zone.
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF |
|---|---|---|---|
| FY25 | -₹3 Cr | -₹13 Cr | ₹17 Cr |
Classic Dekho cash aa raha hai, par kahan ja raha hai? setup.
Major cash flow only from financing. Operations = cash loss.
9. 📐 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | -2% |
| ROE | -7.6% |
| Interest Coverage | < 1x |
| Working Capital Days | 48 |
| CCC | 102 days |
🫠 Design firm hai, lekin financials pe koi blueprint nahi.
10. 📊 P&L Breakdown – Show Me the Money?
| Quarter | Sales | Net Profit |
|---|---|---|
| Mar 2025 | ₹73.3 Cr | ₹0.74 Cr (finally green) |
| Dec 2024 | ₹46.05 Cr | -₹1.24 Cr |
| Sep 2024 | ₹32.5 Cr | -₹2.97 Cr |
| Jun 2024 | ₹20.9 Cr | -₹2.36 Cr |
1 out of 4 quarters profitable. At this rate, their turnaround will take longer than the Mumbai Coastal Road.
11. 🥊 Peer Comparison – Who Else in the Game?
| Company | ROE | OPM | Remarks |
|---|---|---|---|
| L&T | 16.5% | 13% | 🐐 |
| NBCC | 25.9% | 5.18% | PSU beast |
| Techno Electric | 12.8% | 14.9% | Margin king |
| Semac | -7.6% | -3% | Struggler with a ruler |
Semac’s metrics would barely qualify them to design a parking lot in these peer groups.
12. 🧬 Misc – Promoters, Shareholding, Insider Gossip?
- Promoters: Down from 72.6% to 62.8% (👋 selling into weakness?)
- Public Holding: 37.1%
- FIIs: 0.04% (kuch toh bharosa hai… maybe by accident?)
Also notable: Shareholders increased from 4.5K to 6.1K in 12 months. Retail has entered the chat… and might be regretting it.
13. 🧑⚖️ EduInvesting Verdict™
“Design-to-delivery firm stuck in ‘Ctrl+Z’ mode.”
Semac has the industry, the clients, and the capability…
But the execution? 🤡
Margins have gone full reverse gear, debt is inching up, and profits are rarer than rain in May.
📉 Until they post 2-3 clean, positive, margin-rich quarters, this remains a “watch and worry” stock.
✍️ Written by Prashant | 📅 9 July 2025
Tags: Semac Consultants, ASMEPF, EPC Stocks, Construction Design, Negative ROE, Mahindra Projects, EduInvesting, Smallcap Infra Stocks, Civil Engineering Stocks, Turnaround Bets
