Madhulika Agrawal's portfolio stock with Rs 4,898 crore order book: This multibagger civil construction company bags new project worth Rs 101.67 crore from Government of Gujarat!

The total order inflow for the financial year 2023-24 till date amounts to Rs 1,060.30 crore.

PSP Projects Ltd has secured a work order worth Rs 101.67 crore (excluding GST) for the domestic project of constructing and maintaining the main building for the Gujarat Biotechnology Research Centre (GBRC) at GIFT City Gandhinagar, Gujarat. The order is received from the Government of Gujarat and will be completed within 18 months and thereafter operation & maintenance work will be carried out for a further period of 4 years.

With the receipt of the above orders, the total order inflow for the financial year 2023-24 till date amounts to Rs 1,060.30 crore. The company also informed that it has emerged as the Lowest Bidder (L1 Bidder) for the project development of Sabarmati Riverfront for Ahmedabad Municipal Corporation at Ahmedabad, Gujarat worth Rs 409.93 crore (Excl. GST).

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, a 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 1,060.30 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 Rs 2,768 crore.

On Friday, shares of PSP Projects Ltd plunged 1.31 per cent to Rs 768.95 per share with an intraday high of Rs 785.05 and an intraday low of Rs 764.45. The shares of the company saw a spurt in volume by more than 3.36 times on BSE.

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 a 2.78 per cent stake in the company. 

The stock is up by 20 per cent in 1 year and over 100 per cent in 3 years. From Rs 217.50 per share to Rs 768.95 per share, the stock gave multibagger returns of over 250 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