Positives priced in
PSP Projects (PSP) reported yet another weak quarter, with revenue/EBITDA/APAT of INR 5/0.6/0.4bn, thereby missing our estimates at all levels. PSP continues to disappoint with slower-than-expected execution rampup in Q3FY23. Its entire order book (OB) (excl. Bhiwandi and Pandharpur forming 14%) is under execution. The current bid pipeline stands at INR 45bn, of which 70% orders are from Gujarat and 60% are private. The revenue guidance for FY23/24 stands at ~INR 21/27bn, with margin of 11-13% and an order inflow (OI) of ~INR 40bn. Given a robust OB and likely higher execution in the near term, we recalibrate our FY24/25 EPS higher and increase our TP to INR 764/sh (13x Dec-24E EPS). However, due to the recent rally in the stock price and limited upside on our TP, we downgrade our rating to ADD.
Shares of PSP Projects Limited was last trading in BSE at Rs. 720.60 as compared to the previous close of Rs. 690.25. The total number of shares traded during the day was 24138 in over 1459 trades.
The stock hit an intraday high of Rs. 724.00 and intraday low of 690.30. The net turnover during the day was Rs. 17205448.00.