PSP Project share price: Shares of PSP Projects (NSE: PSPPROJECT) traded flat on NSE on May 19, a day after the company released its March quarter (Q4FY23) numbers. At closing PSP Projects' scrip stood at Rs 705 on the NSE, up 0.30 per cent.

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The earnings release showed that the civil construction company registered a consolidated profit after tax (PAT) at Rs 46 crore for Q4FY23 against Rs 55.2 crore a year ago which is a decline of 16.7 per cent. The company’s revenue during the quarter under review surged 31.5 per cent to Rs 729.6 crore from Rs 554.6 crore in the corresponding quarter of the previous fiscal. PSP Projects' earnings before interest, taxes, depreciation, and amortisation (EBITDA) were down by 8.4 per cent to Rs 80.9 crore as compared to Rs 88.3 crore a year ago.

The company’s margin stood at 11.09 per cent against 15.93 per cent year-on-year (YoY). The Board has recommended a final dividend of Rs 2.50 per equity share of the company for the financial year ended March 31, 2023, subject to the approval of the shareholders at the ensuing 15th Annual General Meeting of the company.

"Though PSP Projects is looking lucrative at current levels, one needs to consider that for the last 2 months, it has given a 17 per cent return already. Moreover, Moving Average Convergence and Divergence on a daily scale is displaying negative crossover which hints towards further downside. On the flip side if the said counter again tests 750-770 levels, then one may try to book profits since we have double top formation on a weekly scale. So, one needs to avoid fresh longs," said Jigar S Patel - Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers.

"Even though the company reported the highest-ever quarterly sales at Rs.730 crores, the profitability got impacted quite sharply. The gross margins fell by almost 8 per cent to 15.7 per cent from 23.6 per cent. The company still has a commendable order book of Rs.5,800 crore which can sufficiently ensure significant growth for the topline in the years to come. However, the company needs to ensure there is a strong mechanism in place to minimize the cost overruns in its projects," said Diwakar Rana, Senior Research Analyst, Prudent Equity.

PSP Projects share price history

On a year-to-date (YTD) basis, PSP Projects stock has declined 0.64 per cent as compared to Nifty50’s decline of 0.30 per cent. On a six-month basis, the stock rose over 12 per cent against Nifty50’s decline of over 0.09 per cent.

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