PSP Projects bags mega dairy plant project worth Rs 444.63 crore; stock gains over 2%

PSP Projects has emerged victorious, declared the lowest bidder for a Rs 444.63 crore project to develop a dairy plant in Gujarat for the National Dairy Development Board. This significant win adds to an already impressive year, pushing PSP’s total current bids won for the financial year 2023-24 to a staggering Rs 2,298 crore.

This new project comes on top of Rs 1,060.30 crore worth of work orders already secured this year, further solidifying PSP’s position as a frontrunner in the construction industry. Their expertise in handling large-scale projects and focus on infrastructure development is paying dividends.

Recently, the company emerged as the lowest bidder for a massive Rs 630.90 crore project to construct Gati Shakti Vishwavidyalaya, a prestigious transportation and logistics university in Vadodara. This project win not only strengthens PSP’s order book but also aligns with their commitment to supporting national development initiatives.

With a robust order pipeline and a proven track record, PSP Projects seems poised for continued growth and success in the years to come.

Financial Performance

PSP Projects Limited reported a strong second quarter for FY24, with a net sales increase of 72.13% to Rs 619.65 crore, compared to Rs 359.98 crore in the same quarter last year. The operating profit also experienced a significant increase of 71.66%. The net profit for the quarter stood at Rs 38.48 crore, which was Rs 21.52 crore in the previous year’s same quarter.

Business Overview

PSP Projects Limited is a construction company that offers a diversified range of construction and allied services across industrial, institutional, government, and residential projects in India. It provides services across the construction value chain ranging from planning and designing to construction and post-construction activities which includes mechanical, engineering, and plumbing (MEP) work and other interior fit-out work to private as well as public enterprises. Geographically, it has its presence in a total of 6 states viz. Gujarat, Rajasthan, Karnataka, Uttar Pradesh, Maharashtra and New Delhi.

Stock Price Movement

Today, the stock opened at Rs 764.05, with a high and low of Rs 788.05 and Rs 755.30, respectively. The stock is currently trading at Rs 776.00, which increased by 2.02%. The stock has a 52-week high of Rs 846 and a 52-week low of Rs 652.15. The company has an ROCE of 24.8% and an ROE of 18.1%, with a market capitalisation of Rs 2,795 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.