Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Buy PSP Projects; target of Rs 558: Dolat Capital Market

Dolat Capital Market is bullish on PSP Projects has recommended buy rating on the stock with a target price of Rs 558 in its research report dated January 27, 2021.

January 29, 2021 / 07:02 PM IST
  • bselive
  • nselive
Todays L/H

Dolat Capital Market's research report on PSP Projects

PSP reported results in line with estimates. PSP posted 7.8%/ 13.2%/ 16.6% YoY de-growth in revenue/ EBITDA/ APAT to Rs3.9 bn/ Rs469 mn/ Rs307 mn in Q3FY21. SBD revenue – Rs1.35 bn vs. Rs1.9 bn (Q3FY20). We broadly maintain our FY21E/ FY22E/ FY23E estimates. Labour strength is back at pre covid levels of 100% which stood at 95% in (Q2FY21) vs. 75-80% (Q1FY21) vs. 20-25% in Apr’20. We expect a 6.0%/ 6.1% revenue/ Adj. PAT CAGR over FY20-23E, with EBITDA margins of 11.2%/ 13.0%/ 13.0% for FY21E/ FY22E/ FY23E. Given its conservative strategy towards leverage and an efficient capital allocation, PSP will continue to remain a net cash company, with negative Net D:E of 0.4x over FY20-23E.


PSP will continue to witness superior return ratios (average RoE/ RoCE of 21.2%/ 21.3% over FY20- 23E), due to a strong PAT growth in FY22E, well-managed lean balance sheet and efficient working capital management. We maintain BUY, with a TP of Rs 558 (13x FY23E EPS).


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: Jan 29, 2021 07:02 pm
ISO 27001 - BSI Assurance Mark