Time period given by analyst is one year when PSP Projects Ltd. price can reach defined target.
PSP Projects Ltd., incorporated in the year 2008, is a Small Cap company (having a market cap of Rs 1530.36 Crore) operating in Construction sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 504.36 Crore, up 28.04 % from last quarter Total Income of Rs 393.91 Crore and up 8.73 % from last year same quarter Total Income of Rs 463.88 Crore. Company reported net profit after tax of Rs 42.07 Crore in latest quarter.
Investment Rationale
The company has reached near normalized operation and posted a strong revenue growth for the quarter even with two slow moving projects. With the recent projects wins of around Rs.14.9 bn in UP, the company is now sitting on its highest ever order book with bill to book ratio of 3.3x, giving strong revenue visibility. The margins are likely to remain stable at 11-12% levels based on the current order book and pass through clause in projects. The robust order pipeline would ensure strong order flows in the next couple of years. The brokerge has largely retained estimates for FY22 & FY23 and retains BUY rating on the stock for target price of Rs.547 (13x FY23E EPS).
Promoter/FII Holdings
Promoters held 73.82 per cent stake in the company as of March 31, 2020, while FIIs held 1.27 per cent, DIIs 5.74 per cent and public and others 19.17 per cent.
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