HDFC Securities' research report on PSP Projects
As expected, 1QFY21 was a washout with in-line revenue of Rs 1.07bn (6.1% beat). We have maintained our FY21/22E EPS. Further, sites across Gujarat, Karnataka, Rajasthan and UP remain operational. Labour availability has gradually ramped up from ~20-25% levels to ~70-75% across these states. In Maharashtra, which constitutes ~25% the order book, sites remain shut till date. At present, finishing works are progressing well, with more intensive RCC structural works on hold till labour strength returns to normalcy. No change in FY21E/22E estimates.
Outlook
We maintain REDUCE on PSP Projects with a target price of Rs 370/sh (10x Mar-22E EPS).
For all recommendations report, click here
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