PSP Projects bags order worth INR 372.72 crores
Received orders worth Rs.572.17 crores
PSP came out with very good Q3 numbers. Detailed investor presentation below.
Does the stock appear reasonably priced at 387? Its about 17 PE for FY’19 estimated earnings.
Pretty good Numbers from PSP
Regarding Valuations , i think market will rate it on Order Book basis. Currently a large part of book is for Surat Diamond Bourse and thus risks of limited geographic and revenue diversity.
Current Order book around 2700 Cr and thus good visibility for 2-3 Years.
Need to monitor New Orders closely. In my view , Markets does not give premium if long term visibility is uncertain.
Thanks Bharat! The way I see it - Because of opportunity size and good reputation of PSP with corporates, order book is most likely to be taken care. I came across a report from Edelweiss which quotes “RoCE of 33 per cent and RoE of 25 per cent in FY20E” . This sort of metric appear quite impressive
surat daimond project will be finished by this year end. If company wants to show more revenue, then winning projects > 1000 crs is a must. Until there is a visibility on orders market will not give premium.
they have guided to get orders above 1200 cr in 1819 which is in line …regrading big orders , after Surat diamond project they will be formally eligible to bid for higher order