The shares of this small-cap stock, offering a diversified range of construction and allied services came into focus in Friday’s trading session after receiving multiple work orders for a consideration of Rs 1,764 crore.
Stock Performance
With a market capitalization of Rs 2,486.33 crore, PSP Projects Ltd went up 1 percent in Friday’s trading session and made an intraday high of Rs 635.30 per share compared to its previous closing price of Rs 629.55 per share. The stock retraced and was trading at Rs 627.20 which is a slight decrease compared to the previous closing price.
What Happened
Listed below are the multiple work orders that PSP Projects Ltd has received from the Adani group for a total consideration of Rs 1,764 crore.
- City side Development at Ahmedabad Airport worth Rs 647 crore from Adani Airport Holdings Limited to be completed within 18 months.
- Construction of Adani Medicity & Research Center at Ahmedabad worth Rs 412 crore from Vitthal Mandir to be completed within 24 months.
- Construction of Residential Project at Shatigram worth Rs 140 crore from Adani Realty to be completed within 22 months
- Design and Construction of Leadership Guest House at Shatigram worth Rs 147 crore from Adani Enterprises Limited to be completed within 18 months.
- Construction of Airside and Landside Development work at Ahmedabad Airport worth Rs 223 crore from Ahmedabad International Airport Limited to be completed within 12 months
- Design and Construction of Training Centre at Shantigram worth Rs 61 crore from Adani Enterprises Limited to be completed within 18 months.
- Development of Vishram Gruh at Asarva Civil Hospital Campus worth Rs 51 crore from Sevadaan Arogya Foundation to be completed within 20 months.
Along with this, the company has also emerged as the lowest bidder (L1 Bidder) for the Development of Street at Ahmedabad worth Rs 120.5 crore.
Company Overview
PSP Projects Limited is a construction company offering a wide range of construction and related services across various sectors, including industrial, institutional, government, government residential, and residential projects in India. Additionally, PSP Projects is involved in real estate development, with projects in the USA through its subsidiaries. The company’s total order inflow for FY25 amounts to Rs 3,479 crore.
Financial Performance
In the latest quarter, PSP Projects reported a 11 percent YoY decrease in its revenue from Rs 697 crore to Rs 623 crore. On a quarterly basis however, there was an 8 percent increase from Rs 578 crore in Q2 FY25.
The net profits witnessed a significant 81 percent decline from Rs 33 crore to Rs 6 crore. This was accompanied by a 45 percent QoQ decrease in net profits from Rs 11 crore in Q2 FY25.
Acquisition by Adani
Earlier this year, Adani Infra revealed its plans to acquire a 30.07 percent stake in PSP Projects for ~Rs 685 crore, making it its second acquisition within a month. This move is aimed at enhancing Adani’s construction expertise as part of its broader strategy to invest USD 100 billion in infrastructure.
Written by Shwetha Sairam
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