PSP Projects Ltd (PSPPROJECT) AI Stock Analysis

• Market Cap: ₹37.94B
• Dividend Yield: N/A
• Average Volume (3M): 4.92K
• Price to Earnings (P/E): 135.0
• Beta (1Y): 0.59
• Revenue Growth: -2.24%
• EPS Growth: -70.79%
• Country: IN
• Employees: 1,969
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 3.95
• Shares Outstanding: 39,641,792
• 10 Day Avg. Volume: 3,881
• 30 Day Avg. Volume: 4,924
• PEG Ratio: -0.76
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -163.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹941.00 ▲(3.20% Upside)

The overall stock score of 62 reflects strong financial performance with robust revenue growth and operational efficiency. However, high valuation metrics and technical indicators suggest caution. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Revenue Growth

The significant increase in revenue over recent years indicates robust demand for PSP Projects' services and successful contract acquisition, which supports long-term business expansion and market presence.

Operational Efficiency

Maintaining a strong EBIT margin reflects effective cost management and operational efficiency, which are crucial for sustaining profitability and competitive advantage in the construction industry.

Balance Sheet Health

A low Debt-to-Equity ratio indicates prudent leverage management, providing financial stability and flexibility to invest in growth opportunities without over-reliance on debt.

Negative Factors

Net Profit Margin Decline

The decline in net profit margin suggests challenges in maintaining profitability, which could impact the company's ability to reinvest in growth and manage operational costs effectively.

Negative Free Cash Flow

Persistent negative free cash flow indicates potential liquidity issues, limiting the company's ability to fund new projects and investments without external financing.

Gross Margin Decline

A declining gross margin may signal rising costs or pricing pressures, which could erode profitability and challenge the company's ability to maintain competitive pricing.

PSP Projects Ltd Business Overview & Revenue Model

Company Description

PSP Projects Ltd (PSPPROJECT) is a prominent player in the construction and project management sector, specializing in providing comprehensive solutions for various infrastructure projects. The company operates across multiple sectors including commercial, residential, and institutional construction, offering services such as project management, engineering, and construction services. With a strong emphasis on quality and sustainability, PSPPROJECT aims to deliver innovative and efficient building solutions that meet the evolving needs of its clients.

How the Company Makes Money

PSP Projects Ltd generates revenue primarily through its construction and project management services. The company's revenue model is centered around securing contracts for large-scale infrastructure projects, which can include public works, commercial buildings, and residential developments. Key revenue streams include fixed-price contracts, cost-plus contracts, and time and materials agreements with clients, which allow for a diversified income base. Additionally, PSPPROJECT may benefit from strategic partnerships with government entities, private developers, and other contractors, enhancing its project portfolio and ensuring a steady flow of projects. The company's focus on quality and timely delivery also contributes to repeat business and long-term client relationships, further bolstering its earnings.

PSP Projects Ltd Financial Statement Overview

Summary

PSP Projects Ltd exhibits robust revenue growth and operational efficiency, highlighted by strong gross and EBIT margins. However, the decline in net profit margin and persistent negative free cash flow suggest areas for improvement in profitability and cash flow management. The balance sheet remains strong with low leverage, providing a stable financial foundation. Continued focus on enhancing net margins and generating positive free cash flows will be crucial for sustaining financial health.

Income Statement

PSP Projects Ltd has demonstrated strong revenue growth, with a notable increase from INR 12,408.62 million in 2021 to INR 25,294.45 million in 2025. The company maintains a healthy gross profit margin, although there was a decline from 19.08% in 2024 to 14.17% in 2025. Net profit margin was reduced to 2.23% in 2025 from 4.91% in 2024, indicating pressure on net profitability. However, the EBIT margin remains robust at 9.44% in 2025, reflecting efficient operational management despite the net income drop.

Balance Sheet

The company exhibits a strong equity position, with stockholders' equity increasing from INR 5,358.99 million in 2021 to INR 12,089.40 million in 2025. The Debt-to-Equity ratio remains relatively low at 0.22 in 2025, indicating prudent leverage management. However, the equity ratio has slightly decreased to 51.39% in 2025, which requires attention to ensure sustained financial stability. Overall, PSP Projects Ltd shows a solid balance sheet with manageable liabilities.

Cash Flow

PSP Projects Ltd experienced a significant improvement in operating cash flows from a deficit of INR -2,239.84 million in 2024 to a positive INR 527.10 million in 2025. However, the free cash flow remains negative at INR -152.53 million in 2025, although it is an improvement from previous years. The operating cash flow to net income ratio improved to 0.93 in 2025, showing enhanced cash generation relative to net income. The company should focus on converting these improvements into positive free cash flow for better financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.07B	25.29B	25.06B	19.38B	17.48B	12.41B
Gross Profit	1.57B	3.58B	4.78B	3.47B	3.57B	1.94B
EBITDA	1.47B	1.97B	2.74B	2.55B	2.80B	1.47B
Net Income	221.57M	564.18M	1.23B	1.32B	1.67B	815.26M
Balance Sheet
Total Assets	0.00	23.53B	20.37B	17.65B	12.70B	9.91B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.08B	2.27B	2.42B	1.96B	2.29B
Total Debt	0.00	2.72B	4.55B	1.45B	996.57M	838.67M
Total Liabilities	-12.09B	11.44B	11.22B	9.64B	5.83B	4.55B
Stockholders Equity	12.09B	12.09B	9.15B	8.01B	6.87B	5.36B
Cash Flow
Free Cash Flow	0.00	-152.53M	-3.66B	-344.72M	706.76M	-57.98M
Operating Cash Flow	0.00	527.10M	-2.24B	452.78M	1.47B	734.69M
Investing Cash Flow	0.00	-1.06B	-262.49M	-507.19M	-1.64B	51.95M
Financing Cash Flow	0.00	196.04M	2.69B	115.47M	-107.33M	-43.84M

PSP Projects Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 911.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PSPPROJECT, the sentiment is Positive. The current price of 911.8 is below the 20-day moving average (MA) of 950.32, above the 50-day MA of 853.31, and above the 200-day MA of 724.46, indicating a bullish trend. The MACD of 19.18 indicates Positive momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 32.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PSPPROJECT.

PSP Projects Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAMKY	67 Neutral	₹43.11B	21.10	―	―	-15.09%	-15.98%
CAPACITE	64 Neutral	₹23.74B	12.15	―	―	15.23%	8.61%
PSPPROJECT	62 Neutral	₹37.94B	135.00	―	―	-2.24%	-70.79%
ROHLTD	61 Neutral	₹10.91B	23.64	―	0.61%	10.77%	-4.40%
RPPINFRA	60 Neutral	₹5.83B	8.12	―	0.48%	-7.32%	-26.92%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%