Broker’s call: PSP Projects (Buy)

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Target: ₹988

CMP: ₹779.15

PSP Projects Ltd is an integrated Engineering Procurement Construction (EPC) company providing services across the construction value chain. PSPPL holds an immaculate track record of completing each project on time without compromising on quality.

The company has been constantly improving its credentials under the onus of Mr. PS Patel by constructing iconic projects across India. PSPPL is responsible for constructing the “Surat Diamond Bourse (SDB)”, which now qualifies as the largest office building globally.

As a result, the Company is now pre-qualified to bid for a single project of up to ₹2,500 crore. In addition, PSPPL is anticipated to benefit significantly from the current infrastructure push by the central government.

These factors, coupled with the prudence and rich experience of the management, are expected to bring significant growth while maintaining healthy profitability and financial position in the future.

In addition to this, we are also confident that the superior execution capabilities and financial prudence that the Company has demonstrated in the past will continue to make sure that the business attracts good quality growth while maintaining EBITDA margins in the guided range of 11-13 per cent.