Rs 4,898 crore order book: This multibagger civil construction company emerges as L1 bidder for orders worth Rs 706.78 crore from Ahmedabad Municipal Corporation & Science City!

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.

PSP Projects Ltd informed that the company emerges as L1 bidder for orders worth Rs 706.78 crore from Ahmedabad Municipal Corporation & Science City. Here are the details:

Order No - 1: Development of Sabarmati riverfront in Ahmedabad, Gujarat worth Rs 409.93 crore (Excl. GST). The order is from Ahmedabad Municipal Corporation.

Order No - 2: Construction and Maintenance Agency (CMA) for human and biological science gallery at Science City, Ahmedabad, Gujarat worth Rs 296.85 crores (excl. GST)

Earlier, the company 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.

Order book: 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. 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.

Today, shares of PSP Projects Ltd plunged 1.25 per cent to Rs 765.15 per share with an intraday high of Rs 782.30 and an intraday low of Rs 763. 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 by 22 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