Market Price: ₹691 Recommendation: BUY Target: ₹871 Time Horizon: 1 Year
PSP Projects Limited reported net revenue of ₹500.16 crores for the quarter ended December 31, 2022, compared to ₹485.62 crores for December 30, 2021. Profit After Tax was ₹35.36 crores for the quarter ended December 31, 2022, compared to ₹50.13 crores during the corresponding quarter of the previous year, respectively.
OVERVIEW
BENCHMARK COMPARISON
Beta: 1.02 |
Alpha: 12.36 |
Risk Reward Ratio: 1.44 |
Margin of Safety: 20% |
STOCK DATA
52 Week H/L |
459/776 |
Market Cap (crores) |
2,497 |
Face Value (₹) |
10.00 |
Book Value |
190 |
EPS TTM |
46.29 |
NSE Code |
PSPPROJECT |
|
Sep-22 |
Dec-22 |
Mar-23 |
Promoter |
70.45 |
67.54 |
67.59 |
Public |
23.18 |
26.03 |
25.43 |
FIIs |
1.97 |
2.27 |
2.47 |
DIIs |
4.50 |
4.15 |
4.51 |
SWOT ANALYSIS
STRENGTH
WEAKNESS
OPPORTUNITIES
THREAT
INFRASTRUCTURE SECTOR ANALYSIS
FINANCIAL OVERVIEW
Quarterly (INR in lakhs) |
Dec-22 |
Sep-22 |
Jun-22 |
Mar-22 |
Dec-21 |
Revenue from Operations |
50015.7 |
35998.21 |
34,808.25 |
55,464.66 |
48562.01 |
Other income |
643.37 |
628.4 |
557.97 |
472.66 |
906.99 |
Total Income |
50659.07 |
36626.61 |
35366.22 |
55937.32 |
49469 |
|
|
|
|
|
|
Total Expenditure |
44821.26 |
32956.56 |
30853.12 |
47,652.15 |
41900.43 |
EBIT |
5837.81 |
3670.05 |
4513.1 |
8285.17 |
7568.57 |
|
|
|
|
|
|
Finance cost |
1012.82 |
704.95 |
599.4 |
945.94 |
977.32 |
PBT Before share of Profit/(Loss) of Joint Venture |
4824.99 |
2965.1 |
3913.7 |
7339.23 |
6591.25 |
|
|
|
|
|
|
Share of Profit/(Loss) of Joint Venture |
3.19 |
2.19 |
1 |
38.93 |
-16.65 |
PBT |
4828.18 |
2967.29 |
3914.7 |
7378.16 |
6574.6 |
|
|
|
|
|
|
Tax Expenses |
1292.17 |
812.7 |
1,010.99 |
1856.27 |
1561.36 |
PAT |
3536.01 |
2154.59 |
2903.71 |
5521.89 |
5013.24 |
PROFIT AND LOSS STATEMENT (₹ in lakhs)
|
Mar-20 |
Mar-21 |
Mar-22 |
Revenue from operations |
1,49,925.93 |
1,24,086.24 |
1,74,806.33 |
Other income |
2,416.63 |
1,665.78 |
2,171.64 |
Total income |
1,52,342.56 |
1,25,752.02 |
1,76,977.97 |
|
|
|
|
Cost of goods sold |
53,505.34 |
39,576.77 |
49,897.75 |
Gross Profit |
98,837.22 |
86,175.25 |
1,27,080.22 |
|
|
|
|
Excise duty |
|
|
|
Construction Expenses |
70,044.68 |
64,442.86 |
89,161.31 |
Employee benefits |
5,948.66 |
5,089.71 |
7,233.92 |
Other expenses |
1,344.08 |
1,483.23 |
2,669.44 |
EBITDA |
21,499.80 |
15,159.45 |
28,015.55 |
|
|
|
|
Depreciation and Amortisation |
2,669.55 |
2,563.76 |
3,205.28 |
EBIT |
18,830.25 |
12,595.69 |
24,810.27 |
|
|
|
|
Finance cost |
1,505.58 |
1,500.79 |
2,648.89 |
PBT before exceptional items |
17,324.67 |
11,094.90 |
22,161.38 |
|
|
|
|
exceptional items |
0.00 |
0.00 |
0.00 |
PBT |
17,324.67 |
11,094.90 |
22,161.38 |
|
|
|
|
Tax expenses |
4,504.49 |
2,758.33 |
5,533.91 |
PAT before share of profit/(loss) from Joint venture |
12,820.18 |
8,336.57 |
16,627.47 |
|
|
|
|
Share of profit/(loss) from Joint venture |
10.74 |
-241.94 |
37.76 |
Net profit before Non-controlling interest |
12,830.92 |
8,094.63 |
16,665.23 |
|
|
|
|
Non-controlling interest |
-16.69 |
-58.02 |
0.00 |
Net profit attributable to Holding company |
12,847.61 |
8,152.65 |
16,665.23 |
|
|
|
|
EPS |
|
|
|
Basic |
35.69 |
22.65 |
46.29 |
Diluted |
35.69 |
22.65 |
46.29 |
|
|
|
|
Number of shares |
|
|
|
Basic |
359.98 |
359.94 |
360.00 |
Diluted |
359.98 |
359.94 |
360.00 |
Balance Sheet (₹ in lakhs)
|
Mar-20 |
Mar-21 |
Mar-22 |
ASSETS: |
|
|
|
Non-current assets: |
|
|
|
Property, plant and Equipment |
5,158.53 |
7,735.64 |
10,214.79 |
Capital work-in-progress |
- |
176.31 |
- |
Other Intangible assets |
51.53 |
72.47 |
103.65 |
Financial assets: |
|
|
|
Investments |
382.44 |
65.68 |
65.68 |
Loans |
1,555.84 |
1,794.78 |
2,282.31 |
Other financial assets |
4,365.48 |
6,391.06 |
5,887.95 |
Deferred Tax Assets |
283.26 |
279.73 |
592.13 |
Other Non-current assets |
289.20 |
963.45 |
211.77 |
Total Non-current assets |
12,086.28 |
17,479.12 |
19,358.28 |
|
|
|
|
Current assets: |
|
|
|
Inventories |
360.83 |
3,381.26 |
7,500.17 |
Financial assets: |
|
|
|
Investments |
1,408.15 |
1,511.78 |
- |
Trade receivables |
5,827.76 |
12,346.31 |
14,788.52 |
Cash and cash equivalents |
3,408.51 |
6,162.42 |
3,554.82 |
Bank balance |
7,257.62 |
16,632.66 |
18,665.61 |
Loans |
33.14 |
417.83 |
1,078.28 |
Other financial assets |
1,367.55 |
1,619.25 |
5,576.34 |
Other current assets |
1,004.03 |
342.38 |
2,883.46 |
Current Tax Assets |
58.10 |
79.60 |
102.69 |
Total Current assets |
20,725.69 |
42,493.49 |
54,149.89 |
|
|
|
|
Total Assets |
32,811.97 |
59,972.61 |
73,508.17 |
|
|
|
|
EQUITY AND LIABILITIES: |
|
- |
|
Equity: |
|
|
|
Share capital |
2,880.00 |
3,600.00 |
3,600.00 |
Other Equity |
7,586.64 |
26,541.23 |
33,330.71 |
Equity attributable to owners of holding company |
10,466.64 |
30,141.23 |
36,930.71 |
|
|
|
|
Non-controlling interests |
60.08 |
107.56 |
85.37 |
Total Equity |
10,526.72 |
30,248.79 |
37,016.08 |
|
|
|
|
Non-current liabilities: |
|
|
|
Financial Liabilities: |
|
|
|
Borrowings |
336.37 |
168.49 |
40.87 |
Provisions |
93.04 |
- |
- |
Total Non-current Liabilities |
429.41 |
168.49 |
40.87 |
|
|
|
|
Current Liabilities: |
|
|
|
Financial Liabilities: |
|
|
|
Borrowings |
6,973.34 |
2,640.95 |
2,938.27 |
Trade payables: |
|
|
|
Total outstanding dues of micro and small enterprise |
- |
- |
75.23 |
Other creditors |
7,435.39 |
12,716.59 |
15,838.86 |
Other financial liabilities |
731.59 |
819.00 |
1,172.27 |
Other current liabilities |
5,531.84 |
12,650.82 |
15,339.17 |
Provisions |
5.66 |
59.58 |
47.45 |
Current tax liabilities |
1,178.02 |
668.39 |
1,039.97 |
Total Current Liabilities |
21,855.84 |
29,555.33 |
36,451.22 |
|
|
|
|
Total Equity and Liabilities |
32,811.97 |
59,972.61 |
73,508.17 |
Cash Flow Statement (₹ in lakhs)
|
Mar-20 |
Mar-21 |
Mar-22 |
Net Profit Before Tax |
17,335.41 |
10,852.96 |
22,199.14 |
Net Cash from Operating Activities |
1,550.85 |
7,346.94 |
14,727.31 |
Net Cash Used for Investing Activities |
-798.23 |
519.48 |
-16,414.11 |
Net Cash From (Used For) Financing Activities |
-175.11 |
-438.39 |
-1,073.29 |
Net Increase in Cash and Cash Equivalents |
577.51 |
7,428.03 |
-2,760.09 |
Cash And Cash Equivalents at The Beginning of The Year |
3,554.82 |
4,132.33 |
11,560.36 |
Cash And Cash Equivalents at The End of the Year |
4,132.33 |
11,560.36 |
8,800.27 |
Ratio Analysis
|
Mar-20 |
Mar-21 |
Mar-22 |
Profitability Ratio |
|
|
|
Gross Profit |
65.92% |
69.45% |
72.70% |
EBITDA Margin |
14.34% |
12.22% |
16.03% |
EBIT Margin |
11.56% |
8.94% |
12.68% |
Pre-Tax Margin |
12.56% |
10.15% |
14.19% |
Net Profit Margin |
8.57% |
6.57% |
9.53% |
|
|
|
|
Return on Investment |
|
|
|
Return on Asset – ROA |
15% |
8% |
15% |
Return on Capital Employed – ROCE |
45% |
25% |
40% |
Return on Equity – ROE |
31% |
16% |
27% |
|
|
|
|
Liquidity Ratio (x) |
|
|
|
Current ratio |
1.38803 |
1.53296 |
1.454 |
Quick Ratio |
1.19577 |
1.33553 |
1.30906 |
|
|
|
|
Turnover Ratio |
|
|
|
Receivables Turnover |
7.8278 |
5.37504 |
7.09404 |
Inventory Turnover |
6.22752 |
4.25459 |
6.76671 |
Payables Turnover |
2.91089 |
1.72459 |
2.47682 |
Asset Turnover |
1.76588 |
1.2699 |
1.5458 |
|
|
|
|
Solvency Ratio |
|
|
|
Debt to Equity |
0.01 |
0.01 |
0.02 |
Interest Coverage Ratio |
12.507 |
8.39271 |
9.36629 |
Technical Analysis
CONCALL (Q3FY2023)
Recommendation Rationale
Valuation
Estimated Income Statement (₹ in lakhs)
|
Mar-23 |
Mar-24 |
Mar-25 |
Mar-26 |
Mar-27 |
|
2023-E |
2024-E |
2025-E |
2026-E |
2027-E |
Revenue |
1,85,401.53 |
2,60,528.44 |
3,66,327.16 |
5,15,332.75 |
7,25,203.85 |
COGS |
66,076.79 |
90,229.95 |
1,27,111.32 |
1,79,067.91 |
2,52,261.69 |
Gross Profit |
1,19,324.74 |
1,70,298.50 |
2,39,215.84 |
3,36,264.84 |
4,72,942.16 |
Construction Expenses |
90,537.55 |
1,27,544.66 |
1,79,678.37 |
2,53,121.68 |
3,56,584.83 |
Employee Expenses |
7,405.63 |
10,432.68 |
14,697.02 |
20,704.41 |
29,167.31 |
Other Expenses |
1,919.73 |
2,704.42 |
3,809.85 |
5,367.12 |
7,560.92 |
EBITDA |
19,461.82 |
29,616.74 |
41,030.60 |
57,071.64 |
79,629.10 |
Depreciation |
3,635.47 |
4,733.53 |
6,347.84 |
8,677.69 |
12,005.90 |
EBIT |
15,826.35 |
24,883.21 |
34,682.76 |
48,393.95 |
67,623.21 |
Financial Cost |
1,885.73 |
2,964.86 |
4,132.49 |
5,766.19 |
8,057.38 |
EBT |
13,940.63 |
21,918.35 |
30,550.28 |
42,627.76 |
59,565.83 |
Tax expenses |
3,485.16 |
5,479.59 |
7,637.57 |
10,656.94 |
14,891.46 |
PAT |
10,455.47 |
16,438.76 |
22,912.71 |
31,970.82 |
44,674.37 |
Nayan Nahar Shubham Titvilasi
Equity Research Analyst Equity Research Analyst
Ph: 8149629086 Ph: 7415440968
Email: nayannahar23@gmail.com Email: shubham.titvilasi@gmail.com
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