PSP Projects Ltd. share price target

PSP Projects Ltd (PSP), an efficient and organised constructor in the medium ticket size institutional and industrial construction segment, reported strong set of numbers in Q3FY19.

PSP Projects Ltd (PSP) is an efficient and organised constructor in the medium ticket size institutional and industrial construction segment in and around Gujarat.

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.

PSP Projects Ltd (PSP), an efficient and organised constructor in the medium ticket size institutional and industrial construction segment, reported strong set of numbers in Q2FY19.

PSP reported 50.4% YoY growth in revenue to `2.1 bn (2.6% below estimates) led by robust execution particularly in SDB project worth `560 mn. Excluding SDB, revenue up 10.3% YoY to `1.5bn. EBITDA margin expanded by 64bps YoY to 14.0% (116bps above estimates), primarily led by lower other expenses which was partially offset by higher construction and employee expense. PAT grew by 38.7% YoY to `176 mn (4.0% above estimates) led by robust operating performance. Order book at 2.9x, enhances revenue visibility...

PSP Projects Ltd (PSP), is an efficient and organised constructor in the medium ticket size institutional and industrial construction segment.

We maintain a BUY with a TP of Rs 639/sh (18x Mar-20E EPS). PSPs 1QFY19 revenue of Rs 2.3bn (+50.6%YoY, -11.0% QoQ) was largely driven by the SDB project (~Rs 830mn). EBITDA margin came in at 14%, about 100bps higher than management guidance. Change in project mix (SDB still in initial stage where material cost is significantly higher than labour) was key reason.

PSP Projects Ltd reported strong set of numbers in Q4FY18. For four consecutive quarters, PSP is beating the market expectations both at the topline and bottom...

We maintain BUY on PSP with TP of Rs 639/sh (18x Mar-20E EPS). PSPs 4QFY18 revenue was in-line with our estimates of Rs 2.6bn. Higher than expected EBITDA margins led to EBIDTA/PAT beat of 25.5/23.3%. Balance sheet continues to remain healthy with net cash/equity of 0.7x.

PSP Projects Ltd (PSP) is an efficient and organised constructor in the medium ticket size institutional and industrial construction segment in and around...