PSP Projects Ltd (PSPPROJECT) AI Stock Analysis

• Market Cap: ₹29.62B
• Dividend Yield: N/A
• Average Volume (3M): 4.92K
• Price to Earnings (P/E): 72.4
• Beta (1Y): 0.81
• Revenue Growth: -2.24%
• EPS Growth: -70.79%
• Country: IN
• Employees: 1,969
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 6.54
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹792.00 ▼(-10.30% Downside)

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

Sustained revenue expansion over four years indicates strong project win momentum and effective backlog conversion. Durable top-line growth supports better utilization of fixed costs, enables reinvestment in capabilities, and reduces reliance on single large contracts over the next several quarters.

Operational margin resilience

A near-9.5% EBIT margin reflects disciplined project execution and cost control in a low-margin sector. Sustained operating profitability enhances cash-generation resilience, supports competitive bidding flexibility, and provides a structural buffer against cyclical revenue volatility over the medium term.

Strong balance sheet

Rising equity and low leverage indicate conservative capital structure and retained earnings growth. This financial strength provides durable flexibility to fund working capital for large projects, absorb shocks, and pursue selective capex or strategic opportunities without heavy reliance on external debt.

Negative Factors

Net margin compression

A sharp drop in net margin despite higher revenues signals deterioration in bottom-line conversion, likely from non-operating costs, interest, tax or project-level overruns. If persistent, this compresses retained earnings and constrains investment and shareholder-return capacity over the medium term.

Negative free cash flow

Negative free cash flow, even with improved operating cash flow, implies ongoing capex or working-capital strains. Persistent FCF deficits limit ability to deleverage, pay dividends, or fund inorganic growth, increasing reliance on external financing and raising long-term financial risk.

Declining gross margin

A notable fall in gross margin points to margin pressure from tougher pricing, higher input costs, or a shift to lower-margin project mix. If structural, this erodes earnings leverage on revenue growth and increases earnings volatility, weakening long-term profitability prospects.

PSP Projects Ltd Business Overview & Revenue Model

Company Description

PSP Projects Limited, a construction company, provides construction services for industrial, institutional, residential, social infrastructure, and commercial projects in India. The company constructs industrial buildings for pharmaceutical plants, food processing units, engineering units, and manufacturing and processing facilities; and buildings for hospitals and healthcare services, educational institutes, malls, hospitality services, and corporate offices. It also undertakes government projects and government residential projects; and constructs buildings for group housing and townships, as well as independent residences for select private customers. The company was incorporated in 2008 and is based in Ahmedabad, India.

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 shows strong revenue growth and operational efficiency, with robust gross and EBIT margins. However, the decline in net profit margin and persistent negative free cash flow highlight areas for improvement in profitability and cash flow management. The balance sheet remains strong with low leverage, providing a stable financial foundation.

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: Negative
• Last Price: 882.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 882.9 is above the 20-day moving average (MA) of 791.27, above the 50-day MA of 845.78, and above the 200-day MA of 772.02, indicating a bearish trend. The MACD of -35.93 indicates Positive momentum. The RSI at 39.34 is Neutral, neither overbought nor oversold. The STOCH value of 60.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹32.93B	16.36	―	―	-15.09%	-15.98%
CAPACITE	64 Neutral	₹18.78B	9.40	―	―	15.23%	8.61%
PSPPROJECT	62 Neutral	₹29.62B	72.44	―	―	-2.24%	-70.79%
ROHLTD	61 Neutral	₹9.84B	21.32	―	0.61%	10.77%	-4.40%
RPPINFRA	60 Neutral	₹4.21B	6.85	―	0.47%	-7.32%	-26.92%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
STCINDIA	48 Neutral	₹7.25B	101.96	―	―	―	―

PSP Projects Ltd Corporate Events

PSP Projects Schedules Q3FY26 Earnings Call After Adani Infra Stake Entry

PSP Projects Ltd has scheduled an earnings conference call on January 30, 2026 at 4:00 p.m. IST to discuss its unaudited standalone and consolidated financial results for the third quarter and nine months ended December 31, 2025. The call, which will feature Chairman and Managing Director P.S. Patel and Chief Financial Officer Hetal Patel, underscores the company’s ongoing engagement with investors and analysts following the recent entry of Adani Infra (India) Ltd as a significant promoter, a development that may influence market perception of its growth strategy and execution capabilities in the construction and EPC space.

CARE Revises PSP Projects’ Short-Term Credit Ratings, Keeps Long-Term Rating at A+ Stable

CARE Ratings has updated its assessment of PSP Projects Limited’s bank facilities, reaffirming the company’s long-term bank facilities rating at CARE A+ with a Stable outlook for Rs 155 crore, while revising the ratings on its larger composite facilities. The rating for Rs 1,300 crore of long-term/short-term bank facilities has been downgraded on the short-term side from CARE A1+ to CARE A1, and the standalone short-term bank facilities of Rs 92 crore have similarly been lowered from CARE A1+ to CARE A1, taking the total rated bank facilities to Rs 1,547 crore. The mix of reaffirmation and downgrades suggests that while PSP Projects continues to be viewed as having strong long-term credit quality, its short-term liquidity or risk profile is now seen as marginally weaker, which could influence the cost and terms of its working capital and project financing arrangements.

PSP Projects Announces Postal Ballot and E-Voting Notice

PSP Projects Limited has announced the publication of a newspaper notice regarding a postal ballot and remote e-voting. This announcement, made in compliance with SEBI regulations and the Companies Act, 2013, was published in the Financial Express in both English and Gujarati editions. The notice is significant as it informs stakeholders about the company’s procedural updates, potentially impacting shareholder engagement and corporate governance practices.

PSP Projects Ltd Faces Tax Penalty, Plans to Appeal

PSP Projects Ltd has received an order from the Office of the State Tax Officer in Ahmedabad, imposing a penalty of INR 14,43,100 due to alleged ineligible Input Tax Credit claims under section 16(2) of the SGST/CGST Act, 2017. Despite this order, the company states that there is no material impact on its financials or operations and plans to file an appeal with the appellate authority.