Rs 6,417 Crore Order Book & Mukul Agarwal's Wife Holds 2.27 Per Cent Stake: This Small-cap Company Bags Rs 107 Crore Institutional Order and Formed Strategic Partnership With Adani Infra
Over the past year, the stock has delivered a return of -6.02 per cent, while the three-year return stands at 20.4 per cent.
PSP Projects Limited announced the receipt of a significant work order worth Rs 107.10 crores for the 'Civil Structure and Finishes work for BIFC - 2 Building' at GIFT City, Gandhinagar, Gujarat. This project, given by Brigade (Gujarat) Projects Private Limited, is categorized under institutional projects and is expected to be completed within 24 months. The company has confirmed that this order does not involve any related party transactions, and all work orders are from domestic entities. PSP Projects Limited continues to expand its footprint in the construction sector, and has expertise across different stages of project execution, including engineering, procurement, and construction. PSP Projects Limited has a strong order book and is undertaking projects across various states in India, with a significant presence in Gujarat.
Established in August 2008, PSP Projects Limited is one of the leading construction companies in India, offering a wide range of services across industrial, institutional, government, and residential projects. The company has been awarded as the ‘Fastest Growing Construction Company in India’ in its category.
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In Q3FY25, PSP Projects Limited reported a year-on-year (YoY) decline of 11 per cent in revenue, which stood at Rs 623 crore compared to Rs 697 crore in Q3FY24. However, on a quarter-on-quarter (QoQ) basis, revenue increased by 8 per cent. For the nine-month period ended FY25 (9MFY25), revenue remained steady at Rs 1,813 crore, showing no significant change from 9MFY24 levels.
The company’s operating performance weakened during the quarter, with EBITDA falling by 50.5 per cent YoY to Rs 35 crore. The EBITDA margin also declined to 5.67 per cent from 10.25 per cent in the same quarter last year. Net profit for Q3FY25 dropped sharply by 81.4 per cent YoY to Rs 6 crore, resulting in a PAT margin of 1.0 per cent compared to 4.6 per cent in Q3FY24. Profitability was affected by additional expenses of Rs 18 crore related to UP-based projects, asset write-offs, and losses from its joint venture with GDCL.
As of 9MFY25, the company's outstanding order book stood at Rs 6,417 crore, reflecting a YoY growth of 44 per cent. Of the total order book, 45 per cent comprises private sector projects, while the remaining 55 per cent are government contracts. During Q3FY25, PSP Projects secured three new projects, and a total of ten projects during 9MFY25. These include the company’s largest residential project in GIFT City, a school and hotel project in Lakshadweep, and the Vishram Gruh project at the Civil Campus. Additionally, PSP Projects is in active discussions with the Adani Group for potential new orders, with expectations of meaningful order inflows in the near future.
PSP Projects Limited has entered into an arrangement with Adani Infra to acquire up to a 30.07 per cent stake from the founder promoter. This strategic partnership is expected to enhance the company’s visibility for securing construction orders across Adani Group’s portfolio of companies. The management foresees this collaboration leading to larger order inflows and opening up long-term growth opportunities for the business.
As of April 17, 2025, the stock price of PSP Projects Limited stands at Rs 633.55. The stock has recorded a 52-week high of Rs 727.20 and a 52-week low of Rs 590.40. The company's current market capitalisation is Rs 2,522 crore. Over the past year, the stock has delivered a return of -6.02 per cent, while the three-year return stands at 20.4 per cent. PSP Projects is currently trading at a Price-to-Earnings (PE) ratio of 37.32. Among public shareholders, Madhulika Agarwal holds a significant stake of 2.27 per cent in the company.
Disclaimer: The article is for informational purposes only and not investment advice.