Synopsis: A stock with a 3 year profit CAGR of 29 percent has now entered Middle East oil & gas by acquiring an engineering firm offering FEED and PMC services with Rs 1,300 Cr order book.
A micro-cap stock in the business of EPC and infrastructure solutions has announced a major expansion into the Middle East oil & gas sector. It will acquire a 90 percent stake in an Abu Dhabi-based engineering firm for Rs 1,530 crore, this acquisition strengthens its global presence and sector diversification.
With a market cap of more than Rs 900 Cr, SEPC Ltd saw its stock hit an intraday high close to Rs 5, which is 7 percent higher than the previous close of Rs 4.65. The company stock is currently trading at a PE of 18, which is slightly more than the industry PE of 15.
What’s the news?
SEPC Limited has approved the acquisition of a 90 percent stake in Abu Dhabi-based Avenir International Engineers and Consultants LLC for AED 708 million or around Rs 1,530 crore via a share swap, based on an IBBI valuation. The deal, expected to close within six months, is subject to lender and shareholder approvals.
The Target Company
Founded in 2007, Avenir International Engineers and Consultants operates in oil and gas engineering, providing FEED and PMC services across the MENA region. Its client base includes major entities like ADNOC and DEWA. The company has a strong order book exceeding AED 500 million or around Rs 1300 Cr and has shown consistent growth, reporting revenues of INR 171.89 crore in 2024, INR 156.73 crore in 2023, and INR 71.92 crore in 2022.
Business & Financial Overview
SEPC Limited (formerly Shriram EPC) is a leading Indian engineering firm providing integrated EPC or Engineering, Procurement, and Construction solutions. It specializes in complex turnkey projects across water infrastructure, process plants, power systems, and mining. SEPC is known for delivering end-to-end environmental and renewable energy solutions globally.
In the latest quarter, the company saw a YoY revenue growth of 156 percent, going from Rs 133 Cr in Q3FY25 to Rs 341 Cr in Q3FY26, while the QoQ went up by 44 percent from Rs 237 Cr in Q2FY26. The YoY Net Profits growth is at 275 percent, going from Rs 4 Cr in Q3FY25 to Rs 15 Cr in Q3FY26, while the QoQ growth stood at 88 percent from Rs 8 Cr in Q2FY26.
The company has a 3 year sales CAGR of 22 percent, while the TTM is at 43 percent. The company’s 3 year profit CAGR is at 29 percent, while the TTM number is at 47 percent. The company also has a ROCE of 6 percent and a ROE of 2.5 percent.
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The post ₹1,300 Cr Order Book: Stock Jumps 7% After Co. to Acquire 90% Stake in Abu Dhabi-Based Firm appeared first on Trade Brains.