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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of PSP Projects Ltd

About the Company - PSP Projects Ltd

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 & ContractingPSP 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

PSP Projects Ltd. Share Price Update

Share PriceValue
Today₹738.05
Previous Day₹788.25

Basic Stock Data of PSP Projects Ltd

Market Cap 2,561 Cr.
Current Price 711
High / Low846/652
Stock P/E16.6
Book Value 241
Dividend Yield0.36 %
ROCE24.8 %
ROE18.1 %
Face Value 10.0

Data Source: screener.in

Competitors of PSP Projects Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Prajay Engineers Syndicate Ltd 166 Cr. 23.726.6/9.80 79.60.00 %0.70 %1.63 % 10.0
Indiabulls Real Estate Ltd 6,581 Cr. 122129/45.9 56.20.00 %7.17 %11.4 % 2.00
Alpine Housing Development Corporation Ltd 310 Cr. 179201/99.583.6 44.70.00 %4.64 %3.24 % 10.0
ITD Cementation India Ltd 5,774 Cr. 336375/96.926.0 77.20.22 %18.8 %10.4 % 1.00
Univastu India Ltd 162 Cr. 142152/76.534.9 41.80.00 %19.3 %15.8 % 10.0
Industry Average2,598.60 Cr160.5428.9059.900.04%10.12%8.49%6.60

PSP Projects Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales390501317390486555345357497727510607697
Expenses343439278336412467298318436650445533625
Operating Profit47623955748847396278657471
OPM %12%12%12%14%15%16%14%11%12%11%13%12%10%
Other Income1445856867667
Interest35341096710991215
Depreciation6757910991012121419
Profit before tax39553449637438314863495344
Tax %28%25%27%25%25%27%26%26%27%26%26%26%26%
Net Profit28412537475428233546373933
EPS in Rs7.7611.306.9710.1613.0314.957.916.379.8112.8610.2010.959.03

PSP Projects Ltd Quarterly Chart

PSP Projects Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1792572102804554017301,0441,4991,2411,7491,9272,342
Expenses1632351942584153356288951,3081,1061,4921,6992,064
Operating Profit152217223966102149191135257228278
OPM %9%9%8%8%9%16%14%14%13%11%15%12%12%
Other Income2447101318232514212425
Interest242238991515263241
Depreciation34457811242726324048
Profit before tax121815213964100139174109219180213
Tax %33%33%35%34%36%35%36%35%26%26%26%26%
Net Profit81210142542649012981162133158
EPS in Rs104.38153.12125.88175.6278.5314.4517.8825.0735.9122.4445.1136.9543.82
Dividend Payout %0%7%16%5%19%17%28%20%14%18%11%7%

PSP Projects Ltd Profit & Loss Yearly Chart

PSP Projects Ltd Growth

Compounded Sales Growth
10 Years:22%
5 Years:21%
3 Years:9%
TTM:45%
Compounded Profit Growth
10 Years:27%
5 Years:16%
3 Years:1%
TTM:10%
Stock Price CAGR
10 Years:%
5 Years:10%
3 Years:13%
1 Year:2%
Return on Equity
10 Years:25%
5 Years:23%
3 Years:20%
Last Year:18%

PSP Projects Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital111132936363636363636
Reserves142634466378267335421502649764831
Borrowings26152633456822267581100145400
Other Liabilities515975106117140260333427371482811800
Total Liabilities921011361862293155847319599901,2671,7562,067
Fixed Assets18181933525177103108116207240311
CWIP0000002004201812
Investments03913182220441111
Other Assets74791091401582424866238478321,0591,4981,743
Total Assets921011361862293155847319599901,2671,7562,067

PSP Projects Ltd Reserves and Borrowings Chart

PSP Projects Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1626203041137028197112043
Cash from Investing Activity -222-41-26-43-19-122-34-115-140-48
Cash from Financing Activity 9-149431781-22-2-2-812
Net Cash Flow315-12801129-28674-286

PSP Projects Ltd 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%

PSP Projects Ltd Financial Efficiency Indicators Chart

PSP Projects Ltd 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

PSP Projects Ltd Shareholding Pattern Chart

No. of PSP Projects Ltd Shareholders

PSP Projects Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Bandhan ELSS Tax Saver Fund6843400.9551.3
Bandhan Multi Cap Fund324160.152.43
Motilal Oswal Nifty Microcap 250 Index Fund135470.181.02
Bank of India Manufacturing & Infrastructure Fund131400.60.99
Groww Nifty Total Market Index Fund350.010

PSP Projects Ltd ROCE Trend

PSP Projects Ltd EPS Trend

PSP Projects Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)36.6546.2922.6535.6924.84
Diluted EPS (Rs.)36.6546.2922.6535.6924.84
Cash EPS (Rs.)48.5155.0930.2842.9831.53
Book Value[Excl.RevalReserv]/Share (Rs.)222.50190.82148.86126.35102.82
Book Value[Incl.RevalReserv]/Share (Rs.)222.50190.82148.86126.35102.82
Revenue From Operations / Share (Rs.)538.28485.57344.68416.46291.78
PBDIT / Share (Rs.)70.8577.8242.1159.6747.61
PBIT / Share (Rs.)59.7468.9234.9952.2640.86
PBT / Share (Rs.)50.8661.5630.8248.0838.17
Net Profit / Share (Rs.)37.4046.1923.1635.5624.78
NP After MI And SOA / Share (Rs.)36.6546.2922.6535.6924.84
PBDIT Margin (%)13.1616.0212.2114.3216.31
PBIT Margin (%)11.0914.1910.1512.5414.00
PBT Margin (%)9.4412.678.9411.5413.08
Net Profit Margin (%)6.949.516.718.538.49
NP After MI And SOA Margin (%)6.809.536.578.568.51
Return on Networth / Equity (%)16.4724.2515.2128.2824.21
Return on Capital Employeed (%)25.5635.1523.3440.9539.69
Return On Assets (%)7.4713.118.2213.3412.16
Long Term Debt / Equity (X)0.040.020.010.010.00
Total Debt / Equity (X)0.180.140.130.170.08
Asset Turnover Ratio (%)1.271.551.271.771.57
Current Ratio (X)1.391.451.531.391.49
Quick Ratio (X)1.221.311.341.201.28
Inventory Turnover Ratio (X)5.135.834.286.137.92
Dividend Payout Ratio (NP) (%)13.648.640.0028.0220.12
Dividend Payout Ratio (CP) (%)10.467.240.0023.2015.82
Earning Retention Ratio (%)86.3691.360.0071.9879.88
Cash Earning Retention Ratio (%)89.5492.760.0076.8084.18
Interest Coverage Ratio (X)7.9810.5810.1014.2717.72
Interest Coverage Ratio (Post Tax) (X)5.217.286.559.5010.22
Enterprise Value (Cr.)2319.671846.771512.951039.211464.26
EV / Net Operating Revenue (X)1.201.061.220.691.39
EV / EBITDA (X)9.096.599.984.848.54
MarketCap / Net Operating Revenue (X)1.251.111.340.771.58
Retention Ratios (%)86.3591.350.0071.9779.87
Price / BV (X)3.022.833.112.554.48
Price / Net Operating Revenue (X)1.251.111.340.771.58
EarningsYield0.050.080.040.110.05

PSP Projects Ltd Profitability Ratios (%)

PSP Projects Ltd Liquidity Ratios

PSP Projects Ltd Liquidity Ratios (%)

PSP Projects Ltd Interest Coverage Ratios (X)

PSP Projects Ltd Valuation Ratios

Fair Value / Intrinsic Value of PSP Projects Ltd

Fair Value: ₹726.72

The stock is undervalued by 2.21% compared to the current price ₹711

*Investments are subject to market risks

Strength and Weakness of PSP Projects Ltd

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 (310.00 cr) compared to borrowings (81.69 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (193.77 cr) and profit (100.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 51.35 and average Dividend Yield of 12.39%.

Should I Buy PSP Projects Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in PSP Projects Ltd:
    1. Net Profit Margin: 6.94%
      • 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: 25.56% (Industry Average ROCE: 13.19%)
      • 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. Interest Coverage Ratio (Post Tax): 5.21
      • 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.
    4. Quick Ratio: 1.22
      • 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.
    5. ✗ Stock P/E: 16.2 (Industry average Stock P/E: 13.64)
      • 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.
    6. ✓ Total Debt / Equity: 0.18
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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