Madhulika Agrawal’s portfolio stock with Rs 4,898 crore order book: This civil construction company emerged as lowest bidder (L1) for an order worth Rs 357.08 crore!

The stock is up by 30 per cent in 1 year and over 100 per cent in 3 years.

PSP Projects Ltd informed that the company has emerged as Lowest Bidder (L1 Bidder) for the project development of Dharoi Dam region as a world class sustainable tourist/pilgrimage destination (Package – 2) for Narmada, Water Resources, Water Supply & Kalpsar Department, Gujarat at Dharoi, Gujarat with bid value worth Rs 357.08 crore (excl. GST).

Earlier, the company is in receipt of work orders worth Rs 200.25 crores (excl. GST) *. The details of significant orders are mentioned herein below:

1. Addition of scope of work for Construction of Chocolate Plant for a MultiNational Company in Sanand, Ahmedabad with the revised order value worth Rs 266.56 crore (excl. GST). The project is to be completed within a period of 19 months.

2. Construction of Commercial Complex in GIFT City, Ahmedabad worth Rs 57.33 crore (excl. GST) from Ozone Viswanath Developers in Institutional Category. The project is to be completed within a period of 22 months.

3. Development of Kalamkhus Campus worth Rs 24.81 crore in Ahmedabad for Ahmedabad Municipal Corporation in Government category. The project is to be completed within 18 months. (*includes small value work orders totalling to Rs 42.92 crore)

Results: According to the Quarterly Results, the net sales increased by 72.13 per cent to Rs 619.65 crore and the net profit increased by 78.8 per cent to Rs 38.48 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 60.05 per cent to Rs 1,133.28 crore and the net profit increased by 51 per cent to Rs 76.31 crore in H1FY24 compared to H1FY23.

Order book: Additionally, as of September 30, 2023, the company’s order book stands at Rs 4,898 crore, total 212 projects were completed and 54 projects are ongoing. The total order inflow for the financial year 2023-24 till date amounts to Rs 958.63 crore.

PSP Projects Limited is a construction company offering a diversified range of construction and allied services across industrial, institutional, government, government residential, and residential projects in India. It is also engaged in the real estate development of two mid-scale projects in the USA through its subsidiaries. The company had a market cap of over Rs 2,800 crore.

On Wednesday, shares of PSP Projects Ltd surged 2.60 per cent to Rs 799.95 per share from its previous closing of Rs 779.65. The company's shares are trading at a PE of 17.79x whereas the sectoral PE is 28.5x and an ROCE of 25 per cent, all of which indicate strong managerial performance. As of September 2023, Madhulika Agrawal wife of an ace investor of Mukul Agrawal owns 2.78 per cent stake in the company. 

The stock is up by 30 per cent in 1 year and over 100 per cent in 3 years. From Rs 217.50 per share to Rs 799.95 per share, the stock gave multibagger returns of 268.3 per cent since the stock is listed on the exchanges (June 02, 2017 – BSE Scrip Code: 540544; NSE Scrip Code: PSPPROJECT). Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice