Review

PSP PROJECTS LTD. 

Ticker : 540544
FV: Rs.10
52-Week H/L: Rs.617/358.70 Rec.
Price Rs.569.60
CMP: Rs.551.90
Percentage: - 3.10

We had previously recommended PSP Projects Limited in Volume 35, No. 49 (September 30, 2019 issue), when the scrip was trading at Rs. 569.60. The scrip was recommended based on a positive order book and increasing projects under construction. On consolidated basis, for Q1 FY20, the company’s revenue from operations expanded by 29.16 per cent to Rs. 307.68 Crore from Rs. 238.22 Crore for Q1 FY19. Subsequently, PBT for Q1 FY20 is Rs. 38.92 Crore, registering a growth of 18.66 per cent from Rs. 32.80 in Q1 FY19. As a result of the increasing inflow of orders, PSP Projects gained a net profit of Rs. 25.28 Crore in Q1 FY20, increasing by 20.04 per cent YoY. The company recently paid a final dividend of Rs. 5 per equity share for the financial year ended March 31, 2019. As PSP Projects continues to expand its order book, we recommend a HOLD.