Buy PSP Projects, target price Rs 630: ICICI Direct

ICICI Direct has buy call on PSP Projects with a target price of Rs 630. The current market price of PSP Projects Ltd. is Rs 543.2. Time period given by analyst is one year when PSP Projects Ltd. price can reach defined target.

PSP Projects Ltd., incorporated in the year 2008, is a Small Cap company (having a market cap of Rs 1959.12 Crore) operating in Construction sector.

PSP Projects Ltd. key Products/Revenue Segments include Contract Revenue and Other Operating Revenue for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 559.37 Crore, up 13.08 % from last quarter Total Income of Rs 494.69 Crore and up 10.91 % from last year same quarter Total Income of Rs 504.36 Crore. Company reported net profit after tax of Rs 54.83 Crore in latest quarter.

Investment Rationale
PSP is likely to post 15.3% CAGR in FY22-24E with comfortable order book position, and pick-up in execution. Operating margin to moderate (to 12.8% in FY24E) due to increasing volatility in raw material prices, increased competitive intensity, higher contribution from fixed-price government jobs

Promoter/FII Holdings
Promoters held 70.2 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.78 per cent, DIIs 4.77 per cent.