NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
PSP Projects Ltd.'s Q1 FY25 profit after tax came above the consensus estimates by 20%. This is due to strong execution but the margins were impacted due to increase in expenses in UP projects.
PSP expects margins to be in range of 10-11% for FY25E/FY26E, and expects decrease in revenue growth by 2% at 13% for FY25E (earlier 15%).This has made us to cut the EPS and target price is revised to Rs 732.We value PSP at 15 times PER and retain our rating to Hold.
Order book stands at Rs 59 billion (i.e 2.6 times trailing twelve months revenue), and PSP plans to expand in various other states apart from Gujarat and has also bidded for orders in different states.
PSP has guided capex of Rs 600 million for FY25E, which also includes capex to ramp up precast facility. Stock catalyst remains execution and stability in the margin.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.