Buy PSP Projects, target price Rs 675: HDFC Securities
PSP Projects Ltd. key Products/Revenue Segments include Contract Revenue and Other Operating Revenue for the year ending 31-Mar-2021.
By ETMarkets.com | Updated:
iStock
HDFC Securities has buy call on PSP Projects with a target price of Rs 675. The current market price of PSP Projects Ltd. is Rs 583.6. PSP Projects Ltd., incorporated in the year 2008, is a Small Cap company (having a market cap of Rs 2107.08 Crore) operating in Construction sector.
PSP Projects Ltd. key Products/Revenue Segments include Contract Revenue and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 366.27 Crore, up 3.56 % from last quarter Total Income of Rs 353.66 Crore and down -7.23 % from last year same quarter Total Income of Rs 394.83 Crore. Company reported net profit after tax of Rs 21.52 Crore in latest quarter.
Investment Rationale
PSP Projects (PSP) reported weak revenue/EBITDA/APAT of INR 3.6/0.4/0.2bn, thereby missing estimates at all levels. PSP continues to disappoint on the execution front as the extended monsoon in Q2FY23 led to weak execution and revenue booking. Its entire order book (OB) (excl. Bhiwandi and Pandharpur forming 14%) is under execution, and execution is expected to pick up in H2FY23. The current bid pipeline stands at INR 50bn, of which 52% orders are from Gujarat and 45% are private. FY23 revenue guidance stands at INR 20bn, with margin of 12-12.5% and an order inflow (OI) of INR 25bn.
Promoter/FII Holdings
Promoters held 70.39 per cent stake in the company as of 30-Jun-2022, while FIIs owned 1.89 per cent, DIIs 4.82 per cent.
PSP Projects Ltd. key Products/Revenue Segments include Contract Revenue and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 366.27 Crore, up 3.56 % from last quarter Total Income of Rs 353.66 Crore and down -7.23 % from last year same quarter Total Income of Rs 394.83 Crore. Company reported net profit after tax of Rs 21.52 Crore in latest quarter.
Investment Rationale
PSP Projects (PSP) reported weak revenue/EBITDA/APAT of INR 3.6/0.4/0.2bn, thereby missing estimates at all levels. PSP continues to disappoint on the execution front as the extended monsoon in Q2FY23 led to weak execution and revenue booking. Its entire order book (OB) (excl. Bhiwandi and Pandharpur forming 14%) is under execution, and execution is expected to pick up in H2FY23. The current bid pipeline stands at INR 50bn, of which 52% orders are from Gujarat and 45% are private. FY23 revenue guidance stands at INR 20bn, with margin of 12-12.5% and an order inflow (OI) of INR 25bn.
Promoter/FII Holdings
Promoters held 70.39 per cent stake in the company as of 30-Jun-2022, while FIIs owned 1.89 per cent, DIIs 4.82 per cent.
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