Sattva Engineering Construction Ltd. (NSE SME)

IPO Details

Company Financials (in ₹ Cr)

Peer Comparision (Valuation)

Note: Company financials are from Restated Financial Statements for FY 2025 (31-Mar-2025); peer financials from FY 2025 results on stock exchange websites; P/E based on closing market price on 31-Jul-2025 (stock exchange) ÷ EPS as on 31-Mar-2025; RoNW and NAV from financials as on 31-Mar-2025.
Peer Comparision (Financial Performances)

About Company

Industry Position & Experience:

With a legacy of over 40 years, SECL has established itself as a leading Class I contractor. It has successfully partnered with various government bodies, including the Tamil Nadu Public Works Department (PWD) and the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB).

Business Segments:

SECL provides comprehensive EPC solutions across diverse sectors:

• Water & Wastewater Projects – Design and execution of water distribution networks, pumping mains, tanks (overhead & underground), water and sewage treatment plants, and pumping stations.
• Industrial & Civil Infrastructure – Development of factory buildings, warehouses, container freight stations, and commercial buildings.
• Residential Development – Design and promotion of multi-storeyed apartments, deluxe apartments, residential flats, and independent bungalows to support urban infrastructure.

Key Clients:

SECL has served several reputed clients, including:

• Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB)
• Tamil Nadu Water Supply and Drainage Board (TWAD)
• Public Works Department (PWD)
• Greater Chennai Corporation
• Southern Railway
• Bharat Heavy Electricals Limited (BHEL)

Strength

Strong In-House Execution Capabilities: Backed by an experienced in-house team for designing, engineering, and execution, the company handles complex projects with precision. This ensures timely, cost-effective, and quality delivery in line with project specifications.

Advanced Technology Integration: The company continuously upgrades technical capabilities in STP and WTP construction, ensuring cost efficiency and compliance with environmental regulations while maintaining high quality standards.

Projects Backed by Reputed Funding Agencies: Execution of projects funded by the World Bank, Asian Development Bank, and Central Government schemes provides financial stability, timely payments, lower risk of defaults, and improved profitability.

Weakness

Dependency on Government-Funded Projects: Business is highly reliant on projects funded under schemes like AMRUT and JJM; any reduction in budget allocation can directly impact project availability.

High Working Capital Requirements: Operations are working capital intensive, and insufficient cash flows or limited financing options may affect liquidity, repayments, and overall financial stability.

Risk of Inaccurate Cost Estimation: Incorrect project cost estimates during bidding can reduce profitability and lower the expected returns on contracts.