The 10 reports from 3 analysts offering long term price targets for PSP Projects Ltd. have an average target of 478.67. The consensus estimate represents an upside of 17.28% from the last price of 408.15.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-08-28||PSP Projects Ltd.||Dolat Capital||426.70||516.00||426.70 (-4.35%)||26.42||Buy|
Revenue increased by 43.6% YoY in FY20 to Rs15 bn vs. Rs10.4 bn in FY19. SDB's revenue too increased by 52.7% YoY in FY20 to Rs5.4 bn (36.2% of revenue) vs. Rs3.55 bn (34% of revenue) in FY19. EBITDA margins down 153 bps YoY to 12.7% in FY20 vs. 14.3% in FY19. Reported PAT increased by 43.2% YoY in FY20 to Rs1.29 bn vs. Rs902 mn in FY19. PSP received order inflow of Rs15.8 bn in FY20 vs. Rs14.15 bn in FY19, a growth of 11.5% YoY. PSP's orderbook as on Jun'20 stands at Rs29.6 bn and is L1 in GIDC project worth Rs2.75 bn. Including the same, orderbook stands at Rs32.35 bn...
|2020-08-10||PSP Projects Ltd.||Edelweiss||405.20||550.00||405.20 (0.73%)||34.75||Buy|
|2020-08-06||PSP Projects Ltd.||HDFC Securities||397.15||370.00||397.15 (2.77%)||9.35||Sell|
At present, finishing works are progressing well, with more intensive RCC structural works on hold till labour strength returns to normalcy. No change in FY21E/22E estimates. PSP Projects: We maintain REDUCE on PSP Projects with a target price of Rs 370/sh (10x Mar-22E EPS). As expected, 1QFY21 was a washout with in-line revenue of Rs 1.07bn (6.1% beat). We have maintained our FY21/22E EPS. Further, sites across Gujarat, Karnataka, Rajasthan and UP remain operational. Labour availability has gradually ramped up from ~20-25% levels to ~70-75% across these states. In Maharashtra, which constitutes ~25% the order book, sites remain shut till date.
|2020-06-11||PSP Projects Ltd.||Edelweiss||381.60||590.00||381.60 (6.96%)||44.55||Buy|
|2020-02-08||PSP Projects Ltd.||HDFC Securities||510.75||607.00||510.75 (-20.09%)||48.72||Buy|
PSP delivered robust 3QFY20 performance led by SDB project execution. Base business run-rate ex-SDB of Rs 2.3bn/qtr needs to ramp up to provide growth visibility beyond FY21E as SDB will get completed by Dec-20E. New order wins augur well for growth. Recent award outside Gujarat of Rs 3.4bn in Varanasi is directionally well placed for de-risking Gujarat exposure. We remain cautious on rising share of Govt order in mix. These projects come with interest bearing advances and large BG requirement. Besides PSP needs to arrange 25% cash margin for availing BG's. We maintain BUY. Key risks (1) Delay in diversification outside Gujarat; (2) Delays in new order conversion & (3) Further delay in SDB Project execution. PSP delivered Rev/EBIDTA/APAT beat of 43/32/25% on back of robust execution in SDB project. We maintain BUY with an increased TP Rs 607/sh TP vs Rs 590/sh earlier (we value EPC business at 15x FY21E EPS vs 16x earlier). We have increased our FY20E/FY21E EPS estimates by 7/3%.
|2020-02-07||PSP Projects Ltd.||Edelweiss||509.40||590.00||509.40 (-19.88%)||44.55||Buy|
|2020-01-10||PSP Projects Ltd.||HDFC Securities||528.50||590.00||528.50 (-22.77%)||44.55||Buy|
Change in estimate/TP/Reco.: Owing to price correction, we have upgraded PSP from NEU to BUY. We have cut NCCs FY20/21E EPS estimates by 4.3/13.6% to factor in delay in stuck AP projects re-start and weak order inflows. We cut our TP from Rs 127/sh to Rs 111/sh . Maintain BUY. Top Picks: LT, PNC, KNR & Capacite. Pick-up in ordering yet to play out: Subdued economic growth, tight liquidity, subpar tax collections and limited private capex has impacted projects awarding activity. Our interaction with the EPC companies/NHAI suggests that roads project awarding will pickup from Jan-20E end. We estimate Rs 550bn of NHAI awards during 4QFY20E. Private capex is still subdued with companies deferring even OPEX spends. Recent governement announcement on Rs 102tn National Infrastructure Pipeline till FY25E is a welcome step though ambitious. Silver lining lies in the hope that we are yet to reach peak ordering and average P/E peer valuation is supportive at 4x FY21E EPS.
|2019-10-24||PSP Projects Ltd.||HDFC Securities||542.80||590.00||542.80 (-24.81%)||44.55||Neutral|
With bids placed for orders worth ~Rs 20bn, PSP expects to replenish it order book and maintain order book-to-bill ratio at around 2.5-3x. With 48 project currently under execution and the Bhiwandi EWS project, contributing ~19% of the outstanding order book, expected to contribute to revenues from 4QFY20 onwards, the drop in expected revenue from SDB project is expected to be compensated to some exxtent by execution in other projects and we expect the company to achieve ~25% top-line growth in FY20 (in line with the guidance). We believe that diversification beyond Gujarat market may further aid re-rating. We maintain NEU with a one notch reduction in multiple to factor in the delay of up to 10 months in Surat Diamond Bourse Project. Key risks (1) Delay in diversification outside Gujarat; (2) Delays in new order conversion & (3) Further delay in SDB Project execution. PSP delivered Rev/EBIDTA/APAT beat of 14/13/29%. We maintain the stock at NEU with a TP Rs 590/sh TP vs Rs 579/sh earlier (we value EPC business at 15x FY21E EPS vs 16x earlier). We have revised our FY20E/FY21E EPS estimates by 6/9%.
|2019-10-24||PSP Projects Ltd.||Edelweiss||544.75||590.00||544.75 (-25.08%)||44.55||Buy|
|2019-08-10||PSP Projects Ltd.||HDFC Securities||494.85||579.00||494.85 (-17.52%)||Buy|
With bids placed for orders worth ~Rs 25-30bn, PSP expects to replenish it order book and maintain order book-to-bill ratio at around 2.5-3x. Opportunities in affordable housing schemes coupled with expansion into newer geographies like Maharashtra and Karnataka would enable the company to scale its operations and help grow and maintain sufficient order book backlog. We believe further re-rating is contingent on this successful transformation. We upgrade PSP to BUY. Key risks (1) Delay in diversification outside Gujrat; (2) Delays in receipt of new awards & (3) Slowdown in Private capex. PSP delivered Rev/EBIDTA/APAT beat of 12/12/15%. Owing to recent price correction we upgrade the stock to BUY from NEU with Rs 579/sh TP (we value EPC business at 16x FY21E EPS). We have maintained our FY21E Rev/EBITDA/APAT estimates.
|2019-08-09||PSP Projects Ltd.||Edelweiss||527.55||590.00||527.55 (-22.63%)||Buy|
|2019-07-04||PSP Projects Ltd.||BOB Capital Markets Ltd.||550.90||550.90 (-25.91%)||Target met||Not Rated|
BOB Capital Markets Ltd.
Cyclical business fundamentals worsened in Q1FY20 Singapore GRMs remained depressed at US$ 3.5/bbl (+8% QoQ, 43% YoY), while petrochemical cracks likely declined ~15% QoQ. We see earnings pressure for RIL and OMCs aggravated by softer light-heavy crude spreads. Higher oil prices (+8% QoQ) offer some respite to upstream PSUs. Lower spot LNG prices (27% QoQ) could lift margins and drive robust earnings for CGD companies, but raise uncertainty over GAIL and PLNG's earnings....
|2019-07-03||PSP Projects Ltd.||BOB Capital Markets Ltd.||550.10||550.10 (-25.80%)||Not Rated|
BOB Capital Markets Ltd.
We attended a group meeting with Prahaladbhai Patel, CMD and CEO of PSP Projects (PSPPL). Following are the key takeaways: Targeting ~Rs 35bn near-term bid opportunity: PSPPL has identified several key projects due for award in the near term: (i) Rs 8.5bn riverfront project in Gujarat (multiple small-ticket works of Rs 500mn each); (ii) Rs 8bn unfinished residential project of Nayara Energy in Jamnagar, Gujarat (bids submitted in Mar'19; JMC, PSPPL, Capacite participated); (iii) Rs 15bn residential-cumschool building project of Vedanta in Barmer, Rajasthan; (iv) Rs 1.8bn building project for Gujarat Science City, Ahmedabad; (v) others worth Rs 3bn in Gujarat....
|2019-05-28||PSP Projects Ltd.||HDFC Securities||508.00||579.00||508.00 (-19.66%)||Buy|
PSP is maxing out on execution at current order book levels of Rs 30bn. It needs to replenish its order book and increase the average size of new order wins. Tailwinds provided by the SDB project execution augurs well for meeting qualification requirements of large government/private orders. PSP needs to increase its share of order book in the Mumbai/Bengaluru regions and reduce reliance on Gujarat. We believe further re-rating is contingent on this successful transformation. We maintain BUY. Key risks (1) Delay in diversification; (2) Slow private capex recovery; and (3) High interest rates. We maintain BUY on PSP with an increased TP of Rs 579/sh (vs Rs 550 earlier). We have upgraded our FY21E Rev/EBITDA/APAT estimate by 4.4/4.4/5.2%
|2019-05-28||PSP Projects Ltd.||Edelweiss||528.45||590.00||528.45 (-22.76%)||Buy|
|2019-02-11||PSP Projects Ltd.||HDFC Securities||396.00||603.00||396.00 (3.07%)||Buy|
Maintain BUY with a TP of Rs 603/sh (18x Dec-20E EPS). With a large contribution of ~Rs 0.9bn revenue coming from SDB (~Rs 2.3bn in 9MFY19) PSP posted a strong 53/24% YoY/QoQ top line growth. Margins continued to remain at the upper end of the 12-14% guidance band. With no significant interest outgo, PAT came at Rs 215mn (+41/22% YoY/QoQ).
|2019-02-11||PSP Projects Ltd.||Edelweiss||385.65||594.00||385.65 (5.83%)||Buy|
|2019-01-16||PSP Projects Ltd.||Edelweiss||407.65||590.00||407.65 (0.12%)||Buy|
|2018-11-06||PSP Projects Ltd.||HDFC Securities||376.00||576.00||376.00 (8.55%)||Target met||Buy|
We maintain BUY with TP of Rs 576/sh (18x Mar-20E EPS). PSPs 2QFY19 revenue of Rs 2.3bn (+50.4%YoY, -10.5% QoQ) was largely driven by the SDB project (~Rs 560mn). EBITDA margin came in at 14%, about 100bps higher than management guidance. PSP has won Rs 3.8bn of orders in 2QFY19 (in addition to Rs 520mn in 1QFY19) majority of which are repeat orders. Order book is now Rs 25.8bn.
|2018-11-06||PSP Projects Ltd.||Edelweiss||376.00||594.00||376.00 (8.55%)||Buy|