HDFC Securities is bullish on PSP Projects has recommended buy rating on the stock with a target price of Rs 603 in its research report dated February 11, 2019.
HDFC Securities' research report on PSP Projects
With a large contribution of ~Rs 0.9bn revenue coming from SDB (~Rs 2.3bn in 9MFY19) PSP posted a strong 53/24% YoY/QoQ top line growth. Margins continued to remain at the upper end of the 12-14% guidance band. With no significant interest outgo, PAT came at Rs 215mn (+41/22% YoY/QoQ).
Outlook
We have pruned revenue contribution from SDB by ~Rs 1bn in FY20E resulting in a 3% decline in FY20E EPS. Maintain BUY with a TP of Rs 603/sh (18x Dec-20E EPS).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More
