This smallcap construction company bags multiple orders worth Rs 386 crore; Orderbook now stands almost twice the size of the company!
The company’s outstanding order book stands at Rs 4,443 crore
The BSE Sensex surged by 1,245.05 points, or 1.72 per cent, reaching 73,745.35, while the Nifty50 climbed by 355.95 points, or 1.62 per cent, hitting 22,338.75. This rise was supported by better-than-anticipated growth in the Indian economy. Additionally, the market-wide open interest hitting an all-time high indicated strong market conditions. On Friday, the combined market value of all stocks listed on the NSE reached a new peak of Rs 388.55 trillion
Amidst such positive development in the market, PSP Projects Ltd which is a multidisciplinary construction company in India has recently secured new work orders worth Rs 386.24 crore (excluding taxes), further strengthening their order book. This adds to their already impressive total order inflow of Rs 3,012.85 crore (excluding small value orders) for the current financial year (2023-24).
These orders comprise two significant projects:
- Construction and Maintenance of Human and Biological Gallery at Science City, Ahmedabad. Valued at Rs 268.11 crore, this project for the Gujarat Council of Science City falls under the Government category and is scheduled to be completed within 18 months.
- Construction of Commercial Building ORYX at GIFT City, Gandhinagar.
Priced at Rs 118.13 crore, this institutional category project is slated for completion within 24 months.
Emerging Opportunities
PSP Projects has further solidified its position in the market by emerging as the Lowest Bidder (L1 Bidder) for the prestigious project "Construction of Fintech Building at GIFT City" for Gujarat International Finance at Gift City, Gandhinagar. With a contract value of Rs 333.05 crore (Excl. GST) and a completion timeline of 30 months, this project presents a significant growth opportunity for the company.
About PSP Projects
PSP Projects Limited specializes in a diversified range of construction and allied services across various sectors including industrial, institutional, government, and residential projects in India. The company has a proven track record of executing projects across the construction value chain, from planning and design to post-construction activities.
Growth Trajectory
PSP Projects' execution capabilities have witnessed significant growth over time, enabling the company to bid for and execute larger projects simultaneously. Notable projects in the company's portfolio include the construction of the Surat Diamond Bourse, currently the world's largest office complex.
Financial Performance
In Q3FY2024, PSP Projects reported a 40 per cent increase in revenue from operations, reaching Rs 697 crore, with an EBIDTA growth of 16 per cent to Rs 71 crore. For 9MFY24, revenue from operations grew by 51 per cent to Rs 1,813 crore, with an EBIDTA growth of 42 per cent to Rs 210 crore. As of 9MFY24, the company’s outstanding order book stands at Rs 4,443 crore (Market cap Rs 2,562 crore), despite a 12 per cent decline on a YoY basis due to faster execution and completion of ongoing projects.
With a healthy order book, strong financial performance, and a track record of executing prestigious projects, PSP Projects is well-positioned to capitalize on emerging opportunities in India's construction sector and drive sustained growth in the coming years.
Disclaimer: The article is for informational purposes only and not investment advice
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