NSEI:PSPPROJECT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with limited growth.

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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PSPPROJECT's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.1%

PSPPROJECT

0.3%

IN Construction

1.8%

IN Market


1 Year Return

-18.0%

PSPPROJECT

-13.4%

IN Construction

7.9%

IN Market

Return vs Industry: PSPPROJECT underperformed the Indian Construction industry which returned -13.4% over the past year.

Return vs Market: PSPPROJECT underperformed the Indian Market which returned 7.9% over the past year.


Shareholder returns

PSPPROJECTIndustryMarket
7 Day5.1%0.3%1.8%
30 Day5.6%16.8%10.9%
90 Day-4.2%9.0%9.8%
1 Year-17.0%-18.0%-10.8%-13.4%10.0%7.9%
3 Year-9.6%-12.5%-23.7%-27.5%8.1%2.8%
5 Yearn/a13.4%5.4%55.3%43.6%

Long-Term 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?

18.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSPPROJECT (₹408.85) is trading above our estimate of fair value (₹42.16)

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 (18.1x) compared to the IN Construction industry average (13.1x).

PE vs Market: PSPPROJECT is poor value based on its PE Ratio (18.1x) compared to the Indian market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PSPPROJECT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PSPPROJECT is overvalued based on its PB Ratio (3.2x) 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 1 analyst?

24.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PSPPROJECT's forecast earnings growth is above the savings rate (7.2%).

Earnings vs Market: Insufficient data to determine if PSPPROJECT's earnings are forecast to grow faster than the Indian market

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

Revenue vs Market: PSPPROJECT's revenue (24.2% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: PSPPROJECT's revenue (24.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PSPPROJECT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PSP Projects performed over the past 5 years?

23.4%

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 (6.6%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: PSPPROJECT's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: PSPPROJECT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PSPPROJECT had negative earnings growth (-25.5%) over the past year, making it difficult to compare to the Construction industry average (-20.2%).


Return on Equity

High ROE: PSPPROJECT's Return on Equity (17.4%) is considered low.


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 (₹4.2B).

Long Term Liabilities: PSPPROJECT's short term assets (₹6.3B) exceed its long term liabilities (₹39.9M).


Debt to Equity History and Analysis

Debt Level: PSPPROJECT's debt to equity ratio (25.3%) 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 operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Next Steps

Dividend

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

1.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSPPROJECT's dividend (1.22%) is higher than the bottom 25% of dividend payers in the Indian market (0.52%).

High Dividend: PSPPROJECT's dividend (1.22%) is low compared to the top 25% of dividend payers in the Indian market (2.1%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as PSPPROJECT has not reported any payouts.


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

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Prahlad Patel (57 yo)

4.17yrs

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 ($USD729.41K) is above average for companies of similar size in the Indian market ($USD285.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Prahaladbhai Patel
Chairman4.17yrs₹54.00m51.42%
₹ 7.6b
Hetal Patel
Chief Financial Officer3.92yrs₹2.52m0.00028%
₹ 41.2k
Mittali Christachary
Company Secretary & Compliance Officer2.58yrs₹672.00k0.00083%
₹ 122.2k
Pooja Patel
Executive Director5.17yrs₹10.20m2.78%
₹ 409.0m
Sagar Patel
Executive Director1.08yrs₹2.40m5.56%
₹ 818.0m
Mahesh Patel
Senior Vice President of Operations11.25yrs₹2.60mno data
Dhananjay Mori
Senior Manager of Human Resourcesno datano datano data

4.0yrs

Average Tenure

46yo

Average Age

Experienced Management: PSPPROJECT's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Prahaladbhai Patel
Chairman4.17yrs₹54.00m51.42%
₹ 7.6b
Pooja Patel
Executive Director5.17yrs₹10.20m2.78%
₹ 409.0m
Sagar Patel
Executive Director1.08yrs₹2.40m5.56%
₹ 818.0m
Chirag Shah
Independent Director5.17yrs₹75.00kno data
Sandeep Shah
Independent Director5.17yrs₹75.00kno data
Vasishtha Patel
Independent Director5.17yrs₹90.00kno data
Zarana Patel
Non-Executive Independent Director1.08yrs₹30.00kno data

5.2yrs

Average Tenure

53yo

Average Age

Experienced Board: PSPPROJECT's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PSPPROJECT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: ₹14.724b
  • Shares outstanding: 36.00m
  • Website: https://www.pspprojects.com

Number of Employees


Location

  • PSP Projects Limited
  • PSP House
  • Opposite Celesta Courtyard
  • Ahmedabad
  • Gujarat
  • 380058
  • 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 for industrial, institutional, residential, social infrastructure, and commercial projects in India. The company constructs indu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 12:12
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.