PSP Projects Ltd (PSPPROJECT) AI Stock Analysis

• Market Cap: ₹25.83B
• Dividend Yield: N/A
• Average Volume (3M): 4.92K
• Price to Earnings (P/E): 48.2
• 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): 4.10
• 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: ₹780.00
• Price Target Upside: -11.65% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 25.7
• Revenue Forecast (FY): ₹29.63B

• Rating: 62 Neutral
• Price Target: ₹691.00 ▼(-21.74% Downside)
• Action: Reiterated Date: 11/22/25
• Date: Action: Reiterated 11/22/25

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

Strong revenue growth and scale

Sustained revenue expansion over multiple years shows durable demand and successful project execution. Larger scale supports better supplier terms, project bidding capacity and fixed-cost absorption, strengthening the company's ability to invest in backlog and sustain growth over the next several quarters.

Prudent leverage and equity build

A strengthened equity base and low debt ratio provide financial flexibility for capital-intensive project wins and cyclical headwinds. This conservative capital structure reduces refinancing risk, supports competitive bidding on large contracts, and underpins longer-term balance sheet resilience.

Improving operating cash generation and solid EBIT margin

Conversion of operating cash flow from a prior-year deficit to positive demonstrates better working-capital management and cash realization from projects. Coupled with a robust EBIT margin, this indicates operational efficiency that can sustainably support debt servicing and reinvestment if continued.

Negative Factors

Compressed net profit margin

A sharp reduction in net margin signals pressure beyond operations—likely higher finance, tax or one-off costs—eroding earnings available for reinvestment or reserves. Persistently thin net margins reduce resilience to cost inflation and slowdowns, limiting sustainable free cash flow generation.

Persistent negative free cash flow

Negative free cash flow, even after operating improvements, constrains the company's ability to fund capex, bid financing needs, or reduce leverage without external funding. If sustained, it pressures liquidity and may force higher working-capital financing or equity issuance, affecting strategic flexibility.

Earnings volatility (EPS decline)

A large year-over-year EPS decline indicates earnings sensitivity to project mix, timing or non-recurring items. Such volatility complicates forecasting, investor return expectations and internal planning, making long-term capital allocation and credibility on guidance more difficult.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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 706.83, above the 50-day MA of 755.12, and above the 200-day MA of 786.50, indicating a bearish trend. The MACD of -29.69 indicates Positive momentum. The RSI at 31.17 is Neutral, neither overbought nor oversold. The STOCH value of 66.08 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
PSPPROJECT	62 Neutral	₹25.83B	48.21	―	―	-2.24%	-70.79%
RPPINFRA	62 Neutral	₹3.40B	186.32	―	0.47%	-7.32%	-26.92%
RAMKY	61 Neutral	₹32.75B	12.27	―	―	-15.09%	-15.98%
ROHLTD	61 Neutral	₹8.78B	31.71	―	0.61%	10.77%	-4.40%
CAPACITE	58 Neutral	₹19.38B	10.65	―	―	15.23%	8.61%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
STCINDIA	44 Neutral	₹6.41B	11.60	―	―	―	―

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.