SEDEMAC Mechatronics
SEDEMAC Mechatronics
AutomobilesKey Fundamentals
MicrocapAuto ComponentsAutomobilesPrice-based figures as of 12 Oct 2026, 15:22 IST · TTM
Tapetide Score
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Key Insights
Strengths
1- Company has delivered good profit growth of 69.4% CAGR over last 5 years
Weaknesses
3- Stock is trading at 31.8 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Debtor days have increased from 29.7 to 46.1 days.
Growth Rate
change over 1 year
change over 1 year
change over 1 year
change over 1 year Operating margin 19% · Jun 2026
AI Analysis — Bull vs Bear
As of the 2026-10-05 close, Sedemac Mechatronics Ltd traded at Rs 3,372.3, giving it a market capitalisation of about Rs 14,895.62 crore. That price is 123.98 times TTM EPS of Rs 27.2 and 33.16 times book value. The company has grown quickly: sales compounded at 61% on a TTM basis and 35% over 5 years, while profit compounded at 117% TTM and 69% over 5 years. It earns an ROE of 23.06% and an ROCE of 30.95%, and its debt-to-equity is low at 0.16. Against this, it pays no dividend, debtor days rose from 29.7 to 46.1, and the stock is trading near its 52-week high of Rs 3,650 after a wide 52-week range starting from Rs 1,413.1.
- Profit has grown very fast: 69% CAGR over 5 years, 128% over 3 years and 117% on a TTM basis. This shows earnings momentum has lasted over several periods, not just one.
- Revenue growth has been steady across time frames: 35% CAGR over 5 years, 36% over 3 years, and faster at 61% TTM. Demand for its engine and powertrain control electronics appears to be speeding up rather than slowing down.
- Capital efficiency is high, with ROCE of 30.95% and ROE of 23.06%. That suggests the business makes good returns on the capital it puts to work.
- The balance sheet carries little debt, with debt-to-equity of 0.16. This leaves room to fund capacity expansion or R&D without heavy borrowing, and keeps interest costs from weighing on profits.
- ROE has trended up: from 18% over 5 years to 22% over 3 years and 27% last year. Profitability has been improving as the company grows.
- Profit has grown faster than sales: 117% TTM profit growth against 61% TTM sales growth, and 128% against 36% over 3 years. This implies operating leverage and margin expansion as revenue scales.
- The P/E of 123.98 looks less stretched when compared with growth. It works out to about 1.8 times the 5-year profit CAGR of 69% and about 1.1 times the TTM profit growth of 117%, so on a growth-adjusted basis the multiple is partly cushioned.
- The valuation is very high: a P/E of 123.98 is an earnings yield of only about 0.8%. Today's price already assumes strong growth will continue, so any slowdown or miss could compress the multiple sharply.
- The stock trades at 33.16 times book value, or about Rs 102 of book value per share against a price of Rs 3,372.3. That leaves little asset backing if growth or returns disappoint.
- Debtor days rose from 29.7 to 46.1, an increase of about 55%. This points to more cash tied up in receivables and possibly weaker bargaining power with OEM customers.
- The dividend yield is 0% even though the company is consistently profitable, with TTM EPS of Rs 27.2. Investors get no income and rely entirely on the share price rising.
- The stock is about 139% above its 52-week low of Rs 1,413.1 and only about 7.6% below its 52-week high of Rs 3,650. The rally has been strong, so the price could be more volatile if sentiment turns.
- ROE has slipped to 23.06% on a TTM basis from 27% last year. Returns may be easing as the equity base grows, and that is happening at a time when the valuation needs returns to keep improving.
- There is no 1-, 3-, 5- or 10-year stock CAGR history and no 10-year financial history. That limits how well investors can judge how the stock and the business hold up through full auto-industry cycles.
- The headline TTM profit growth of 117% is well above the 5-year CAGR of 69%. Part of the recent jump may come from a low base, so it may not be possible to keep it up at the rate the current multiple implies.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- ₹1,469 cr PE block deal Sep 23
A block deal of 48.79 lakh shares, about 11% of equity, went through on Sep 24 at an average of ₹3,010. The floor price of ₹3,000 was a 1.2% discount to the ₹3,075 close. Sellers included A91, Xponentia entities, Mace and HDFC Life.
- Post-lock-in supply overhang Sep 23
Sellers in the block deal agreed to a 60-day lock-in, which ends around late November 2026. More stake sales could follow, since promoters hold only 26.23% and financial investors hold large stakes (AIFs 21.59%).
- Short-term price momentum fading Sep 23
The stock fell 1.52% over the past week and 5.47% over the past month, even with year-to-date gains of 111.91%.
- Record ECU volumes, +37.5% YoY Oct 3
Sedemac reported record quarterly sales of control-intensive ECUs in Q2FY27. Volumes rose 37.5% YoY to 1.45 million units.
- Pune MF3 begins commercial production Sep 25
Limited commercial production started at Manufacturing Facility 3 in Pune on Sep 25, 2026. The company plans to bring the remaining processes online in stages, which adds capacity for future growth.
- 127% gain since March IPO Sep 23
The stock has more than doubled from its ₹1,352 IPO price. It listed on Mar 11, 2026 at ₹1,535 on NSE (a 13.5% premium) and closed at ₹3,075 on Sep 23.
- Block deal absorbed at a premium Sep 23
The ₹1,469 cr block cleared at ₹3,010, above the ₹3,000 floor. The stock still closed 1.3% higher at ₹3,075, which shows solid institutional demand.
- Xponentia stake cut to 9.33% Sep 25
Xponentia Group sold 28.34 lakh shares (6.42%) on the open market on Sep 24, cutting its holding to 9.33%. The article dates the sale to 2024, which is likely a typo for 2026.
- A91 Fund trims to 7.29% Sep 25
A91 Emerging Fund II LLP sold 24,03,105 shares on the open market on Sep 25, 2026, bringing its holding down to 7.29%.
- ₹36.81 cr large-trade signal Sep 24
A trade scanner flagged about 1,12,743 shares on BSE trading near ₹3,265.20. This signal is not confirmed by the exchange, and the counterparties are unknown.
- Institution-heavy shareholding base Sep 23
As of June 2026, promoters held 26.23%, mutual funds 15.33%, AIFs 21.59% and HDFC Life 2.4%. Public shareholders held 73.77% in total.
TL;DR: Sedemac's business is strong: Q2FY27 ECU volumes hit a record 1.45 million units (+37.5% YoY), and new Pune MF3 capacity is coming online. The stock is up 127% from its IPO price. The main risk is supply from early investors leaving, with an 11% block deal worth ₹1,469 cr plus further open-market sales by A91 and Xponentia, while short-term momentum has cooled (-5.47% over a month). Fundamentals are improving, but watch for more stake sales after the 60-day lock-in ends around late November and how quickly MF3 ramps up.
Quarterly Results
| Particulars | Mar 2025 | Jun 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Sales | 180 | 217 | 267 | 288 | 310 |
| Expenses | 152 | 174 | 216 | 227 | 251 |
| Operating Profit | 28 | 43 | 51 | 60 | 59 |
| OPM % | 16% | 20% | 19% | 21% | 19% |
| Other Income | 0 | 3 | 3 | 1 | 1 |
| Interest | 3 | 2 | 2 | 1 | 2 |
| Depreciation | 13 | 13 | 18 | 18 | 16 |
| PBT | 13 | 30 | 33 | 42 | 41 |
| Tax % | 32% | 43% | 27% | 23% | 19% |
| Net Profit | 9 | 17 | 24 | 32 | 33 |
| EPS (₹) | 3,042 | 6,011 | 5.56 | 7.26 | 7.54 |
Profit & Loss
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Sales | 240 | 283 | 423 | 531 | 658 | 1,058 |
| Expenses | 213 | 254 | 376 | 452 | 537 | 842 |
| Operating Profit | 28 | 29 | 47 | 78 | 121 | 217 |
| OPM % | 12% | 10% | 11% | 15% | 18% | 20% |
| Other Income | 3 | 3 | 7 | 5 | 4 | 5 |
| Interest | 4 | 7 | 16 | 38 | 12 | 9 |
| Depreciation | 17 | 21 | 30 | 36 | 45 | 63 |
| PBT | 9 | 4 | 8 | 9 | 68 | 150 |
| Tax % | 17% | 21% | -7% | 33% | 30% | 31% |
| Net Profit | 7 | 4 | 9 | 6 | 47 | 104 |
| EPS (₹) | 6,609 | 3,182 | 7,721 | 5,250 | 16,625 | 23.45 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% |
Balance Sheet
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 0.01 | 0.01 | 0.01 | 0.01 | 0.03 | 44 |
| Reserves | 109 | 114 | 115 | 124 | 303 | 405 |
| Borrowings | 47 | 90 | 134 | 170 | 64 | 72 |
| Other Liabilities | 64 | 58 | 82 | 108 | 123 | 292 |
| Total Liabilities | 220 | 262 | 331 | 402 | 491 | 814 |
| Fixed Assets | 71 | 102 | 136 | 151 | 197 | 253 |
| CWIP | 36 | 32 | 44 | 62 | 53 | 91 |
| Investments | 0 | 0 | 0 | 0 | 19 | 0 |
| Other Assets | 113 | 129 | 151 | 189 | 222 | 470 |
| Total Assets | 220 | 262 | 331 | 402 | 491 | 814 |
Cash Flow
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Operating | 16 | 10 | 78 | 61 | 91 | 128 |
| Investing | -26 | -51 | -51 | -59 | -105 | -148 |
| Financing | 2 | 35 | -24 | -1 | 13 | 18 |
| Net Cash Flow | -7 | -6 | 2 | 0 | -1 | -2 |
| Free Cash Flow | -7 | -40 | 22 | -6 | 5 | -47 |
| CFO/OP | 63 | 39 | 166 | 85 | 87 | 71 |
Ratios
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Debtor Days | 46 | 21 | 13 | 19 | 24 | 46 |
| Inventory Days | 135 | 173 | 109 | 118 | 120 | 106 |
| Days Payable | 124 | 83 | 80 | 77 | 76 | 128 |
| Cash Conversion Cycle | 57 | 110 | 42 | 60 | 68 | 25 |
| Working Capital Days | 9 | 2 | -38 | -43 | 21 | 17 |
| ROCE % | — | 6% | 11% | 18% | 24% | 35% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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60 extracted metrics + investor summaries across FY21–FY27.
Documents
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Company Information
Incorporated in 2007, SEDEMAC Mechatronics Ltd is a Pune-based technology company specializing in control electronics.[1]
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