Fundamental

PSP PROJECTS LIMITED 

Ticker : 540544
BUY: Rs569.60
Target: Rs640 

PSP Projects is a civil construction company engaged in the business of making investments in joint ventures or partnerships or special purpose vehicles for development of townships, construction of residential-commercial premises, roads or bridges, and not to carry out real estate business. The company’s Q1FY20 results were impressive with 30 per cent YoY growth in terms of revenues at Rs. 307.68 crore. The PBIDT also jumped 28 per cent YoY to Rs. 43 crore. The bottom-line expanded 20 per cent to Rs. 25 crore. Moreover, the company has bagged orders worth Rs. 848 crore till the end of Q1FY20, out of which Rs. 762 crore was received in the first quarter. The company’s outstanding order book as on June 30, 2019 stood at Rs. 3402 crore, including 49 projects under execution. Looking at these factors, we recommend a BUY