NSEI:PSPPROJECT

Stock Analysis Report

Executive Summary

PSP Projects Limited, a construction company, provides construction services across industrial, institutional, residential, social infrastructure, and commercial projects in India.

Rewards

Earnings are forecast to grow 22.46% per year

Earnings grew by 40.5% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Exceptional growth potential with solid track record.

Share Price & News

How has PSP Projects's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PSPPROJECT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.9%

PSPPROJECT

-1.5%

IN Construction

-1.1%

IN Market


1 Year Return

34.3%

PSPPROJECT

-11.4%

IN Construction

2.9%

IN Market

Return vs Industry: PSPPROJECT exceeded the Indian Construction industry which returned -11.4% over the past year.

Return vs Market: PSPPROJECT exceeded the Indian Market which returned 2.9% over the past year.


Shareholder returns

PSPPROJECTIndustryMarket
7 Day7.9%-1.5%-1.1%
30 Day-1.9%-8.8%-0.8%
90 Day-0.2%-6.9%6.0%
1 Year35.6%34.3%-10.2%-11.4%4.9%2.9%
3 Yearn/a21.8%17.5%32.7%25.7%
5 Yearn/a23.3%16.4%41.2%28.5%

Price Volatility Vs. Market

How volatile is PSP Projects's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PSP Projects undervalued compared to its fair value and its price relative to the market?

16.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSPPROJECT (₹511.25) is trading above our estimate of fair value (₹290.14)

Significantly Below Fair Value: PSPPROJECT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PSPPROJECT is poor value based on its PE Ratio (17x) compared to the Construction industry average (11.4x).

PE vs Market: PSPPROJECT is poor value based on its PE Ratio (17x) compared to the Indian market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: PSPPROJECT is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: PSPPROJECT is overvalued based on its PB Ratio (4.6x) compared to the IN Construction industry average (0.7x).


Next Steps

Future Growth

How is PSP Projects forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSPPROJECT's forecast earnings growth (22.5% per year) is above the savings rate (6.5%).

Earnings vs Market: PSPPROJECT's earnings (22.5% per year) are forecast to grow faster than the Indian market (19.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PSPPROJECT's revenue (20.7% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: PSPPROJECT's revenue (20.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSPPROJECT's Return on Equity is forecast to be high in 3 years time (28.2%)


Next Steps

Past Performance

How has PSP Projects performed over the past 5 years?

33.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSPPROJECT has a high level of non-cash earnings.

Growing Profit Margin: PSPPROJECT's current net profit margins (8.9%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: PSPPROJECT's earnings have grown significantly by 33.7% per year over the past 5 years.

Accelerating Growth: PSPPROJECT's earnings growth over the past year (40.5%) exceeds its 5-year average (33.7% per year).

Earnings vs Industry: PSPPROJECT earnings growth over the past year (40.5%) exceeded the Construction industry 6.5%.


Return on Equity

High ROE: PSPPROJECT's Return on Equity (26.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PSP Projects's financial position?


Financial Position Analysis

Short Term Liabilities: PSPPROJECT's short term assets (₹6.3B) exceed its short term liabilities (₹4.5B).

Long Term Liabilities: PSPPROJECT's short term assets (₹6.3B) exceed its long term liabilities (₹2.2M).


Debt to Equity History and Analysis

Debt Level: PSPPROJECT's debt to equity ratio (18.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PSPPROJECT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PSPPROJECT's debt is not well covered by operating cash flow (1.6%).

Interest Coverage: PSPPROJECT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PSPPROJECT has a high level of physical assets or inventory.

Debt Coverage by Assets: PSPPROJECT's debt is covered by short term assets (assets are 8.3x debt).


Next Steps

Dividend

What is PSP Projects's current dividend yield, its reliability and sustainability?

0.97%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%0.6%markettop25%2.5%industryaverage1.3%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: PSPPROJECT's dividend (0.97%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: PSPPROJECT's dividend (0.97%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PSPPROJECT has been paying a dividend for less than 10 years.

Growing Dividend: PSPPROJECT's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.5%), PSPPROJECT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of PSP Projects's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Prahlad Patel (56yo)

3.3yrs

Tenure

₹54,000,000

Compensation

Mr. Prahaladbhai Shivrambhai Patel, also known as Prahlad, B.E.Civil, has been the Chairman and Managing Director at PSP Projects Pvt. Ltd. since July 07, 2015 and has been its Chief Executive Officer sinc ...


CEO Compensation Analysis

Compensation vs Market: Prahlad's total compensation ($USD764.43K) is above average for companies of similar size in the Indian market ($USD311.37K).

Compensation vs Earnings: Prahlad's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

45.5yo

Average Age

Experienced Management: PSPPROJECT's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

54yo

Average Age

Experienced Board: PSPPROJECT's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹2,407,98119 Aug 19
Prahaladbhai Patel
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares4,605
Max Price₹522.91
Buy₹22,186,16329 Jun 19
Prahaladbhai Patel
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares40,000
Max Price₹554.65

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Prahlad Patel (56yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: ₹54.00m
  • Mittali Christachary

    Company Secretary & Compliance Officer

    • Tenure: 1.7yrs
    • Compensation: ₹534.00k
  • Shilpaben Patel (52yo)

    Whole-Time Director

    • Tenure: 11.3yrs
    • Compensation: ₹18.00m
  • Pooja Patel (26yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: ₹10.20m
  • Hetal Patel (45yo)

    Chief Financial Officer

    • Tenure: 3yrs
    • Compensation: ₹2.16m
  • Sagar Patel

    Executive Director

    • Tenure: 0.2yrs
  • Mahesh Patel (46yo)

    Vice President of Operations

    • Tenure: 10.3yrs
    • Compensation: ₹2.60m
  • Ravi Motian (39yo)

    Manager of Human Resource

    • Tenure: 3.7yrs

Board Members

  • Prahlad Patel (56yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: ₹54.00m
  • Shilpaben Patel (52yo)

    Whole-Time Director

    • Tenure: 11.3yrs
    • Compensation: ₹18.00m
  • Pooja Patel (26yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: ₹10.20m
  • Chirag Shah (52yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹90.00k
  • Sandeep Shah (57yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹90.00k
  • Vasishtha Patel (57yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹90.00k
  • Sagar Patel

    Executive Director

    • Tenure: 0.2yrs
  • Zarna Patel

    Additional Non-Executive Independent Director

    • Tenure: 0.2yrs

Company Information

PSP Projects Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PSP Projects Limited
  • Ticker: PSPPROJECT
  • Exchange: NSEI
  • Founded: 2008
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹18.272b
  • Shares outstanding: 36.00m
  • Website: https://www.pspprojects.com

Number of Employees


Location

  • PSP Projects Limited
  • PSP House
  • opposite Celesta Courtyard
  • Ahmedabad
  • Gujarat
  • 380054
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540544BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2017
PSPPROJECTNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2017

Biography

PSP Projects Limited, a construction company, provides construction services across industrial, institutional, residential, social infrastructure, and commercial projects in India. The company constructs i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 13:17
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.