PSP Projects - Construction Company

(namanman) #43

PSP Projects bags order worth INR 372.72 crores

(vchhajed) #44

Received orders worth Rs.572.17 crores

(Manohar T. Patil) #45

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.

(Bharat) #46

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.

(Manohar T. Patil) #47

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

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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