Rs 4,898 crore order book: This multibagger civil construction company emerges as L1 bidder for orders worth Rs 158.61 crore from Gandhinagar Municipal Corporation!

As of September 2023, Madhulika Agrawal wife of an ace investor of Mukul Agrawal owns a 2.78 per cent stake in the company.

PSP Projects Ltd informed that the company emerges as an L1 bidder for orders worth Rs 158.61 crore (excl. GST). The order includes civil, MEP and finishing work for the Development of the Street and the order is received from Gandhinagar Municipal Corporation at Gandhinagar, Gujarat.

Earlier, the company bagged significant contracts worth Rs. 706.78 crore, emerging as the L1 bidder for two major projects in Ahmedabad, Gujarat. The company will handle the development of the Sabarmati riverfront for Rs. 409.93 crore on behalf of the Ahmedabad Municipal Corporation, while the Science City has awarded them a Rs. 296.85 crore contract for constructing and maintaining a human and biological science gallery. This marks a major win for PSP Projects, solidifying their position as a leading construction player in the region.  

Order book: With the receipt of the above, the total value of projects for which we stand as Lowest Bidder amounts to Rs 1,222.47 crore for the financial year 2023-24, which is in addition to the work orders received till date amounting to Rs 1060.30 crore for the financial year 2023-24. Additionally, as of September 30, 2023, the company’s order book stands at Rs 4,898 crore, a total of 212 projects were completed and 54 projects are ongoing.

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 2,750 crore.

On Friday, shares of PSP Projects Ltd surged 0.33 per cent to Rs 764.60 per share with an intraday high of Rs 771.15 and an intraday low of Rs 748. 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. 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 over 20 per cent from its 52-week low of Rs 640.55 per share. Investors should keep an eye on this Small-Cap stock.

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