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Last Updated on: 21 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of PSP Projects Ltd

Basic Stock Data

Last Updated: July 20, 2024, 10:42 pm

Market Cap 2,625 Cr.
Current Price 662
High / Low846/598
Stock P/E21.2
Book Value 254
Dividend Yield0.38 %
ROCE19.1 %
ROE14.4 %
Face Value 10.0
PEG Ratio-25.12

Data Source: screener.in

Competitors of PSP Projects Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Construction Company Ltd 7,733 Cr. 46.053.4/17.8 1.000.00 %21.6 %% 1.00
Peninsula Land Ltd 1,979 Cr. 64.178.2/28.221.8 7.970.00 %26.6 %70.5 % 2.00
SKIL Infrastructure Ltd 143 Cr. 6.6210.2/3.458.39 9.140.00 %0.21 %% 10.0
PNC Infratech Ltd 13,012 Cr. 507575/31014.3 2020.10 %16.1 %19.2 % 2.00
Patel Engineering Ltd 4,973 Cr. 58.979.0/42.022.4 40.80.00 %13.9 %7.34 % 1.00
Industry Average8,396.56 Cr293.28130.90127.710.09%12.71%50.71%6.50

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales501317390486555345357497727510607697649
Expenses439278336412467298318436650445533625597
Operating Profit62395574884739627865747152
OPM %12%12%14%15%16%14%11%12%11%13%12%10%8%
Other Income4458568676676
Interest534109671099121514
Depreciation75791099101212141920
Profit before tax55344963743831486349534424
Tax %25%27%25%25%27%26%26%27%26%26%26%26%36%
Net Profit41253747542823354637393315
EPS in Rs11.306.9710.1613.0314.957.916.379.8112.8610.2010.959.034.24

Last Updated: July 10, 2024, 9:00 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 9:00 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2572102804554017301,0441,4991,2411,7491,9272,462
Expenses2351942584153356288951,3081,1061,4921,6992,201
Operating Profit2217223966102149191135257228262
OPM %9%8%8%9%16%14%14%13%11%15%12%11%
Other Income447101318232514212424
Interest42238991515263251
Depreciation4457811242726324065
Profit before tax1815213964100139174109219180170
Tax %33%35%34%36%35%36%35%26%26%26%26%27%
Net Profit1210142542649012981162133124
EPS in Rs153.12125.88175.6278.5314.4517.8825.0735.9122.4445.1136.9534.42
Dividend Payout %7%16%5%19%17%28%20%14%18%11%7%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-16.67%40.00%78.57%68.00%52.38%40.62%43.33%-37.21%100.00%-17.90%-6.77%
Change in YoY Net Profit Growth (%)0.00%56.67%38.57%-10.57%-15.62%-11.76%2.71%-80.54%137.21%-117.90%11.13%

Growth

Compounded Sales Growth
10 Years:28%
5 Years:19%
3 Years:26%
TTM:28%
Compounded Profit Growth
10 Years:29%
5 Years:6%
3 Years:14%
TTM:-8%
Stock Price CAGR
10 Years:%
5 Years:6%
3 Years:14%
1 Year:-4%
Return on Equity
10 Years:23%
5 Years:20%
3 Years:19%
Last Year:14%

Last Updated: July 17, 2024, 5:16 pm

Balance Sheet

Last Updated: July 10, 2024, 9:00 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital11132936363636363636
Reserves2634466378267335421502649764879
Borrowings152633456822267581100145455
Other Liabilities5975106117140260333427371482811653
Total Liabilities1011361862293155847319599901,2671,7562,022
Fixed Assets181933525177103108116207240322
CWIP00000200420183
Investments3913182220441111
Other Assets791091401582424866238478321,0591,4981,697
Total Assets1011361862293155847319599901,2671,7562,022

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 26203041137028197112043-227
Cash from Investing Activity 2-41-26-43-19-122-34-115-140-48-25
Cash from Financing Activity -149431781-22-2-2-812269
Net Cash Flow15-12801129-28674-28617

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow7.00-9.00-11.00-6.00-2.0080.00123.00116.0054.00157.0083.00-193.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days39172431849585055656582
Inventory Days8771289456666825996
Days Payable115132183175133199164140148237188232
Cash Conversion Cycle-68-108-152-132-117-142-60-24-27-89-64-54
Working Capital Days-42-44-71-97-63-55-44-816273042
ROCE %47%53%34%33%44%50%44%41%41%22%35%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.19%74.19%69.88%70.16%70.20%70.39%70.45%67.54%67.59%66.22%66.22%66.22%
FIIs1.29%1.29%1.27%1.71%1.78%1.89%1.97%2.27%2.47%4.20%4.23%3.30%
DIIs5.52%3.97%4.95%5.72%4.77%4.82%4.40%4.15%4.51%5.33%5.35%5.01%
Public19.00%20.55%23.89%22.41%23.24%22.90%23.18%26.03%25.43%24.26%24.20%25.48%
No. of Shareholders14,41519,32522,64528,32435,12335,28536,75036,92136,25236,91142,34648,541

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Bandhan ELSS Tax Saver Fund684,3400.9551.3352024-07-201955157.14%
Bandhan Multi Cap Fund32,4160.152.43352024-07-2092517.14%
Motilal Oswal Nifty Microcap 250 Index Fund13,5470.181.02352024-07-2038605.71%
Bank of India Manufacturing & Infrastructure Fund13,1400.60.99352024-07-2037442.86%
Groww Nifty Total Market Index Fund350.010352024-07-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)34.1636.6546.2922.6535.69
Diluted EPS (Rs.)34.1636.6546.2922.6535.69
Cash EPS (Rs.)52.3148.5155.0930.2842.98
Book Value[Excl.RevalReserv]/Share (Rs.)254.13222.50190.82148.86126.35
Book Value[Incl.RevalReserv]/Share (Rs.)254.13222.50190.82148.86126.35
Revenue From Operations / Share (Rs.)696.05538.28485.57344.68416.46
PBDIT / Share (Rs.)79.2170.8577.8242.1159.67
PBIT / Share (Rs.)61.1959.7468.9234.9952.26
PBT / Share (Rs.)47.0750.8661.5630.8248.08
Net Profit / Share (Rs.)34.2937.4046.1923.1635.56
NP After MI And SOA / Share (Rs.)34.1636.6546.2922.6535.69
PBDIT Margin (%)11.3713.1616.0212.2114.32
PBIT Margin (%)8.7911.0914.1910.1512.54
PBT Margin (%)6.769.4412.678.9411.54
Net Profit Margin (%)4.926.949.516.718.53
NP After MI And SOA Margin (%)4.906.809.536.578.56
Return on Networth / Equity (%)13.4416.4724.2515.2128.28
Return on Capital Employeed (%)22.9625.5635.1523.3440.95
Return On Assets (%)6.037.4713.118.2213.34
Long Term Debt / Equity (X)0.040.040.020.010.01
Total Debt / Equity (X)0.490.180.140.130.17
Asset Turnover Ratio (%)1.321.271.551.271.77
Current Ratio (X)1.421.391.451.531.39
Quick Ratio (X)1.121.221.311.341.20
Inventory Turnover Ratio (X)4.075.135.834.286.13
Dividend Payout Ratio (NP) (%)0.0013.648.640.0028.02
Dividend Payout Ratio (CP) (%)0.0010.467.240.0023.20
Earning Retention Ratio (%)0.0086.3691.360.0071.98
Cash Earning Retention Ratio (%)0.0089.5492.760.0076.80
Interest Coverage Ratio (X)5.617.9810.5810.1014.27
Interest Coverage Ratio (Post Tax) (X)3.435.217.286.559.50
Enterprise Value (Cr.)2697.962319.671846.771512.951039.21
EV / Net Operating Revenue (X)1.081.201.061.220.69
EV / EBITDA (X)9.469.096.599.984.84
MarketCap / Net Operating Revenue (X)0.981.251.111.340.77
Retention Ratios (%)0.0086.3591.350.0071.97
Price / BV (X)2.703.022.833.112.55
Price / Net Operating Revenue (X)0.981.251.111.340.77
EarningsYield0.040.050.080.040.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 778.36

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 17.58% compared to the current price 662

Intrinsic Value: 771.79

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 16.58% compared to the current price 662

Last 5 Year EPS CAGR: -0.84%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 39.08%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -25.75, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -86.42, which is a positive sign.
  4. The company has higher reserves (338.67 cr) compared to borrowings (90.92 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (195.00 cr) and profit (104.00 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in PSP Projects Ltd:
      1. Net Profit Margin: 4.92%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 22.96% (Industry Average ROCE: %)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 13.44% (Industry Average ROE: %)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 3.43
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 1.12
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 21.2 (Industry average Stock P/E: )
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.49
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company

    PSP Projects Ltd. is a Public Limited Listed company incorporated on 26/08/2008 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L45201GJ2008PLC054868 and registration number is 054868. Currently Company is involved in the business activities of Manufacture of articles of concrete, cement and plaster. Company’s Total Operating Revenue is Rs. 1748.76 Cr. and Equity Capital is Rs. 36.00 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Construction, Contracting & EngineeringPSP House, Opposite Celesta Courtyard, Ahmedabad Gujarat 380058grievance@pspprojects.com
    http://www.pspprojects.com
    Management
    NamePosition Held
    Mr. Prahaladbhai S PatelChairman & M.D & CEO
    Ms. Pooja P PatelWhole Time Director
    Mr. Sagar P PatelExecutive Director
    Mrs. Achala Monal PatelIndependent Director
    Mr. Vasishtha P PatelIndependent Director
    Mr. Sandeep H ShahIndependent Director

    FAQ

    What is the latest fair value of PSP Projects Ltd?

    The latest fair value of PSP Projects Ltd is ₹778.36.

    What is the Market Cap of PSP Projects Ltd?

    The Market Cap of PSP Projects Ltd is 2,625 Cr..

    What is the current Stock Price of PSP Projects Ltd as on 21 July 2024?

    The current stock price of PSP Projects Ltd as on 21 July 2024 is 662.

    What is the High / Low of PSP Projects Ltd stocks in FY 2024?

    In FY 2024, the High / Low of PSP Projects Ltd stocks is 846/598.

    What is the Stock P/E of PSP Projects Ltd?

    The Stock P/E of PSP Projects Ltd is 21.2.

    What is the Book Value of PSP Projects Ltd?

    The Book Value of PSP Projects Ltd is 254.

    What is the Dividend Yield of PSP Projects Ltd?

    The Dividend Yield of PSP Projects Ltd is 0.38 %.

    What is the ROCE of PSP Projects Ltd?

    The ROCE of PSP Projects Ltd is 19.1 %.

    What is the ROE of PSP Projects Ltd?

    The ROE of PSP Projects Ltd is 14.4 %.

    What is the Face Value of PSP Projects Ltd?

    The Face Value of PSP Projects Ltd is 10.0.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in PSP Projects Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE