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May 18, 2017 01:47 PM IST |

Subscribe to PSP Projects: HEM Securities

HEM Securities has come out with its report on PSP Projects. The research firm has recommended to "Subscribe " the IPO in its research report as on May 18 , 2017.

Subscribe to PSP Projects: HEM Securities

HEM Securities report on PSP Projects

Co is a multidisciplinary construction company offering a di-versified range of construction and allied services across indus-trial, institutional, government, government residential and residential projects in India. Co provide its services across the construction value chain, ranging from planning and design to construction and postconstruction activities to private and public sector enterprises. Historically, co have focused on pro-jects in the Gujarat region. One of the first major projects that co completed was the construction of the GCS Medical College, Hospital and Research Centre (managed by the Gujarat Cancer Society) in June 2012. Subsequently, co have successfully exe-cuted a number of prestigious projects, including, inter alia, the construction and interior works of Swarnim Sankul 01 and 02 at Gandhinagar, the construction of the Zydus Hospital at Ah-medabad, and various works in relation to the Sabarmati River-front Development project at Ahmedabad.


Reasons to "Subscribe"
Co have completed or is currently undertaking projects for a number of reputed customers, including, inter alia, Cadila Healthcare Limited, Care Institute of Medical Sciences Limited (CIMS), Claris Injectables Limited, Emcure Pharmaceuticals Limited, Gelco Electronics Private Limited, GCS Medical College, Hospital and Research Centre, the Government of Gujarat (through the Executive Engineer, Capital Project Division), In-ductotherm (India) Private Limited, Intas Pharmaceutical Lim-ited, Kaira District Co-operative Milk Producers’ Union Limited (Amul Dairy), KHS Machinery Private Limited, Nirma Limited, Sabarmati River Front Development Corporation Limited, Tor-rent Pharmaceuticals Limited and WTC Noida Development Company Private Limited. Company’s total order book as of March 31, 2017, was Rs 7,291.65 million, which comprised of 17 institutional projects, four industrial projects, four govern-ment projects and two government residential projects.


Valuation
At price band of Rs 205-210 ,co is bringing the issue at p/e multi-ple of around 20.61-21.11 on FY17 annualized Eps of Rs 9.54/share . Although co has strong track record but looking after valuations issue looks almost fully priced at current levels with nothing much has been left for investors on table. Hence we rec-ommend "Subscribe" on issue for long term.


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