Buy PSP Projects, target price Rs 975: ICICI Direct

ICICI Direct has buy call on PSP Projects with a target price of Rs 975. The current market price of PSP Projects is Rs 799.2. Time period given by analyst is 6-12 months when PSP Projects price can reach defined target.

PSP Projects, incorporated in the year 2008, is a Small Cap company (having a market cap of Rs 2876.40 Crore) operating in Construction sector.

PSP Projects key Products/Revenue Segments include Contract Revenue and Other Operating Revenue for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 519.29 Crore, down -29.47 % from last quarter Total Income of Rs 736.29 Crore and up 46.83 % from last year same quarter Total Income of Rs 353.66 Crore. Company has reported net profit after tax of Rs 37.83 Crore in latest quarter.

Investment Rationale
PSP is well placed for healthy growth at decent margins to be driven by strong executable order book position. Healthy order inflows secured atFY23 and Q1FY24 coupled with robust bidding pipeline brightens company’s prospects. At the CMP, the company is trading at a valuation of~12x FY25E P/E

Promoter/FII Holdings
Promoters held 66.22 per cent stake in the company as of 30-Jun-2023, while FIIs owned 4.2 per cent, DIIs 5.33 per cent.