The shares of this smallcap company jumped around 5 percent in Tuesday’s trading session after receiving an order worth Rs. 270 crores to build residential tower in GIFT City.
Price Movement:
With a market capitalization of Rs. 2,603 crores, the shares of PSP Projects Ltd started Tuesday’s trading session on a flatter note at Rs. 633.75 compared to its previous close of Rs. 631.90. During the trading session, the shares hit a high of Rs. 669, gaining around 5 percent and are currently trading at Rs. 655 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it received a Work Order for the Construction of a high-rise Residential Tower “SIBAN” at GIFT City, Gandhinagar worth Rs. 269.55 crores in Residential Category. The project is to be completed within a period of 31 months.
With the receipt of the above order, the total order inflow of the company for the financial year 2024-25 till date amounts to Rs. 1,714.46 crores.
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Financials:
Looking at the company’s financial statements, the revenue decreased by around 7 percent from Rs. 668 crores during the March quarter to Rs. 623 crores in the June quarter. Contrastingly, the net profits surged around 119 percent from Rs. 16 crores to Rs. 35 crores during the same timeframe.
Recent Development:
Earlier, the company bagged new orders worth Rs. 554.92 crore. The orders included the construction of the old Stone Hotel and Commercial Towers at Bengaluru worth Rs. 389.29 crore in the institutional category and the construction of residential towers in Ahmedabad worth Rs. 165.04 crore.
Order Book:
As of the end of Q1 FY25, PSP Projects reported an order book of Rs. 5,890 crores, with 67 percent of this total coming from government projects.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 13.44 percent and a return on capital employed (RoCE) of 22.96 percent for the period spanning FY23-24. Further, during the same period, the net profit margin stood at 4.92 percent.
Future Outlook:
PSP Projects Ltd has provided guidance for FY25, indicating a revenue growth target of 15 percent and an EBITDA margin expected to range between 10-11 percent. The company anticipates an order inflow of Rs. 3,500 crores during the fiscal year, supported by a robust bidding pipeline exceeding Rs. 6,000 crores.
Company Profile:
Headquartered in Ahmedabad, PSP Projects was incorporated in 2008. The company offers a diverse range of construction and allied services across industrial, institutional, and residential projects in India. Their services span the entire construction value chain, including planning, design, construction, and post-construction activities.
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Written By Vaibhav Patil
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