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Last Updated : Aug 10, 2018 04:41 PM IST | Source: Moneycontrol.com

Buy PSP Projects; target of Rs 639: HDFC Securities

HDFC Securities is bullish on PSP Projects has recommended buy rating on the stock with a target price of Rs 639 in its research report dated 10 Aug 2018.

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HDFC Securities' research report on PSP Projects


PSP’s 1QFY19 revenue of Rs 2.3bn (+50.6%YoY, -11.0% QoQ) was largely driven by the SDB project (~Rs 830mn). EBITDA margin came in at 14%, about 100bps higher than management guidance. Change in project mix (SDB still in initial stage where material cost is significantly higher than labour) was key reason.


Outlook


PSP may bid for Education Institutions IIT/IIMs. We expect PSP’s order book/APAT to grow ~1.2/2.0x over FY18-20E. We maintain a BUY with a TP of Rs 639/sh (18x Mar-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.

First Published on Aug 10, 2018 04:41 pm
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