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PVR Inox’s Net Loss at Rs 333 crore in Q4 – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

PVR Inox Q4 Results: Net loss at Rs 333 crore

PVR Inox reported a net loss of Rs 333 crore for the quarter ended March 2023 (Q4 FY23), compared to a net profit of Rs 16.1 crore in Q4FY22. However, its operating revenue jumped 113% YoY to Rs 1,143 crore during the same quarter. EBITDA stood at Rs 285 crore in Q4FY23. This is the company’s first quarterly results after its merger with Inox.

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WPI inflation falls to -0.92% in April

Wholesale price-based inflation, WPI declined to -0.92% in April on an annual basis from 1.34 % in March. Primary articles inflation slowed to 1.60%, and fuel & power inflation reduced to 0.93 % in April. Inflation in manufactured products declined to -2.42 % in April from -0.77 % in March.

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Berger Paints Q4 Results: Net profit falls 16% YoY to Rs 186 crore

Berger Paints reported a 16% YoY fall in net profit to Rs 185.7 crore for the quarter ended Q4 FY23. Its revenue jumped 12% YoY to Rs 2,443.6 crore during the same quarter. EBITDA also rose 6% to Rs 368 crore during the quarter. The company’s board has recommended a dividend of Rs 3.2 per equity share.

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SpiceJet subsidiary SpiceXpress to get USD 100 million from UK group

SpiceJet’s subsidiary, SpiceXpress and Logistics, will receive a $100 million investment from a UK-based group, SRAM & MRAM Group. This investment comes as SpiceJet faces financial difficulties and an insolvency plea from an aircraft lessor. The investment from SRAM & MRAM Group is part of a Memorandum of Understanding (MoU) following a debt restructuring agreement between SpiceJet and aircraft lessor Carlyle Aviation Partner, which acquired a stake in SpiceXpress at an expected future valuation of $1.5 billion.

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Hikal receives zero observations from USFDA for Gujarat unit

Hikal announced that its Panoli unit in Gujarat, India, received a favorable inspection outcome from the US Food &  Drug Administration (USFDA) with no observations. This marks the third successful inspection at the facility, enabling Hikal to manufacture advanced intermediates and key starting materials.

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Kalyan Jewellers Q4 Results: Net profit falls 1.6% YoY to Rs 71 crore

Kalyan Jewellers reported a 1.6% YoY decline in net profit to Rs 71 crore for Q4 FY23. However, its consolidated revenue rose 18.4% YoY to Rs 3,381 crore during the same quarter. EBITDA also rose 17.5% YoY to Rs 256.7 crore. The company’s board has recommended a final dividend of Rs 0.5 per equity share.

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UltraTech Cement commissions factory in Rajasthan capable of 0.8 MT annual output

UltraTech Cement has commissioned a 0.8 MTPA brownfield cement factory in Neem Ka Thana, Rajasthan, through its subsidiary UltraTech Nathdwara Cement. With this addition, their grey cement capacity in Rajasthan reaches 17.05 MTPA, and their total grey cement manufacturing capacity in India is now 129.95 MTPA.

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Vedanta appoints Sonal Shrivastava as CFO from June 1

Vedanta Ltd has announced the appointment of Sonal Shrivastava as its chief financial officer (CFO), effective from June 1. Shrivastava previously served as the CFO for Asia Pacific, Middle East, and Africa operations at the Holcim group. In her new role, she will lead Vedanta’s financial strategy, overseeing accounting, tax, treasury, investor relations, financial planning, analytics, and driving digitalization and profitability.

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NTPC to start feasibility study for 130-MW floating solar power plant in Tripura

NTPC Ltd is set to conduct a feasibility study for a 130-MW floating solar power plant on Dumbur Lake in Tripura’s Gomati district. The Tripura Renewable Energy Development Agency (TREDA) signed a Memorandum of Understanding (MoU) with NTPC to conduct the feasibility study. The study will assess the required waterbody area, identify transfer stations, and obtain forest clearance. The study is estimated to cost Rs 450 crore and is expected to be completed in a few months.

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ONGC arm raises $500m in foreign currency loan

ONGC’s overseas subsidiary ONGC Videsh has secured a $500 million foreign currency loan from a consortium of banks including DBS, Bank of Baroda, and State Bank of India. The syndicated loan has a tenure of five years, is denominated in dollars, and is supported by ONGC’s guarantee. The funds raised through the loan will be used to repay $500 million in bonds that recently matured.

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PSP Projects bags order worth over Rs 317 cr

PSP Projects has secured a contract worth Rs 317.13 crore from Gujarat’s Narmada, Water Resources, Water Supply, and Kalpsar Department. The project involves developing the Dharoi Dam region into a sustainable tourist and pilgrimage destination, including infrastructure, roads, and an adventure water sports arena. The company aims to complete the project within 18 months.

Read more here.

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Steel Prices Rise to 3-Month High in Jan – Top Indian Market Updates

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Here are some of the major updates that could move the markets tomorrow:

Steel prices rise to 3-month high of ₹56,900 per tonne in Jan: SteelMint

According to a SteelMint report, steel prices increased by 5% to hit a three-month high of ₹56,900 per tonne in January. Prices of coking coal have risen in January to $310 per tonne from $279 a tonne in December 2022. India remains dependent on imports to meet over 85% of its coking coal requirements.

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Axis Bank enters into revised pact to acquire additional 7% stake in Max Life

Axis Bank has entered into a revised agreement with Max Financial Services to acquire an additional 7% stake in Max Life Insurance at fair market value using discounted cash flow method. The revision in the agreement follows the guidance issued by the Insurance Regulatory and Development Authority (IRDAI) in October 2022. Discounted cash flow refers to the estimated value of an investment based on future cash flows.

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Coal India subsidiary NCL to start M-Sand production

Northern Coalfields Ltd (NCL), a subsidiary of Coal India Ltd, will soon start production of M-Sand, a material used for construction works. NCL will start production of M-Sand or Manufactured Sand for its Amlohri project in Madhya Pradesh.

In other news, CIL has issued Letters of Acceptance for nine coal mining projects to be operationalised through the engagement of mine developers and operators. These 9 projects have a production capacity of around 127 million tonnes (MT).

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NTPC produces 14.55 MT coal from captive mines in April-December

State-owned NTPC’s coal production increased 51% year-on-year (YoY) from its captive mines to 14.55 million tonnes (MT) in April-December 2022. Its four operational coal mines have contributed to accomplishing the highest-ever monthly coal production of 22.83 lakh tonnes in December 2022. In the third quarter (Q3 FY23), NTPC produced 5.79 MT of coal and dispatched 5.42 MT to its power plants.

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Glenmark Pharma launches generic version of diuretic Bumetanide injection

Glenmark Pharmaceuticals Ltd’s US arm has launched its generic version of diuretic Bumetanide injection. Bumetanide is used to reduce extra fluid in the body (edema) caused by conditions like congestive heart failure, liver disease, and kidney disease. According to IQVIA sales data, the generic version of this injection achieved annual sales of approx. $16.5 million for the 12 months ended November 2022.

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Non-promoter shareholders allowed to sell stake via OFS: Sebi

The Securities and Exchange Board of India (SEBI) has modified the existing framework for conducting an offer for sale (OFS) of securities by companies by allowing non-promoter stakeholders to opt for the same. Until now, only promoter and promoter group entities were allowed to sell stakes through an OFS on the stock exchanges. The OFS mechanism will now be available to companies with a market capitalisation of ₹1,000 crore and above.

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PSP Projects wins ₹1,344 crore order from Surat Municipal Corporation

PSP Projects Ltd. has secured a government project worth Rs 1,344.01 crore from the Surat Municipal Corporation (SMC). The company will construct a state-of-the-art high-rise office building for SMC in Surat, Gujarat. With this latest order, the total order inflow of PSP Projects has increased to ₹3,292.59 crore in the current financial year (FY23). 

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​​Indian Overseas Bank revises interest rates up to 45 basis points

Indian Overseas Bank (IOB) has revised interest rates on rupee retail term deposits up to 45 basis points (bps) with immediate effect. Depositors of the domestic, non-resident ordinary (NRO), and non-resident external (NRE) would receive interest rates up to 7.75% by opening term deposits for 444 days. The interest rate on foreign currency deposits has also increased by up to 100 bps.

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Zydus Lifesciences gets final USFDA approval for Febuxostat tablet

Zydus Lifesciences has received final approval from the United States Food & Drug Administration (USFDA) to market Febuxostat tablets. The tablets are prescribed for lowering or controlling high uric acid levels in patients suffering from gout (or severe arthritis). It will be produced at the pharma company’s formulation manufacturing facility at Moraiya, near Ahmedabad.

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Adani-led group completes purchase of Israel’s Haifa Port

A consortium led by India’s Adani Group has completed the purchase of Haifa Port in northern Israel for 4 billion shekels ($1.15 billion). Israel has been selling its state-owned ports and building new private docks to bring down costs and cut above-average waiting times for vessels to unload. The entry of the Shanghai International Port Group (SIPG) and the Adani-led group will likely boost Israel’s standing as a regional trade hub.

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Manufacturing PMI Hits 13-Month High in Dec – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

India’s manufacturing PMI rises to 13-month high in Dec

India’s manufacturing sector recorded its sharpest growth in output in 13 months in December 2022. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) stood at 57.8 in December, compared to 55.7 in Nov. New orders rose at the fastest pace since February 2021 even though selling prices surged more than input costs for the first time in two and a half years.

PMI is a month-on-month calculation, and a value above 50 represents an expansion compared to the previous month.  

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Auto sales data for Dec 2022: Highlights  

Maruti Suzuki India posted a 9% year-on-year (YoY) decline in total sales to 1.39 lakh units in December 2022. Sales of its compact vehicle segment fell 21.5% YoY to 67,267 units. Exports fell 2.2% YoY to 21,796 units.

Tata Motors Ltd registered a 10% YoY increase in total sales to 72,997 units in Dec. The automaker’s commercial vehicle sales fell 0.6% YoY to 33,949 units. Overall passenger vehicle sales rose 14% YoY to 40,407 units.

Mahindra & Mahindra’s passenger vehicle segment posted total sales of 28,445 units in Dec, an increase of 61% YoY. M&M’s tractor sales rose 27% YoY to 23,243 units. 

TVS Motor Company’s total sales stood at 2.28 lakh units in Dec, down 3% YoY. Meanwhile, Bajaj Auto’s sales fell 22% YoY to 2.81 lakh units.

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India’s electricity consumption grows 11% to 121.19 BU in December

Power consumption in India grew 11% YoY to 121.19 billion units (BU) in December 2022. This indicates the sustained momentum of economic activities last month. Reports indicate that power consumption and demand will further increase in January due to the use of heating appliances (especially in the north) and a further improvement in economic activities.

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SBI, ICICI Bank, HDFC Bank remain domestic systemically important banks: RBI

The Reserve Bank of India (RBI) said the State Bank of India, ICICI Bank, and HDFC Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs). D-SIBs are interconnected entities whose failure can impact the whole financial system and create instability. The current update is based on the data collected from banks as of March 31, 2022, the RBI said.

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CIL’s coal supply to power sector rises 11% to 433 MT in April-Dec

Coal India Ltd’s (CIL) coal supply to the power sector rose 11% YoY to 432.7 million tonnes (MT) in the April-December period of the current financial year (FY23). The supply to the non-power sector last month was 10.5 MT due to increased output. The company supplied close to 508 MT of coal to all-consuming segments in April- December, registering a growth of 5.4% YoY. CIL accounts for over 80% of India’s coal output.

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Tea industry facing multiple challenges in wake of Covid pandemic: Experts

The tea industry in India is struggling with low prices and high input costs due to the damages caused by the Covid-19 pandemic. Production has also been declining from 1,390 million kg in 2019 to 1,258 million kg in 2020, 1,329 million kg in 2021, and 1,050 million kg till October 2022. Stakeholders within the industry are calling for more focus on quality and boosting exports. 

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Recession will hit a third of the world in 2023, warns IMF chief

A third of the global economy will be in recession this year, said International Monetary Fund (IMF) chief Kristalina Georgieva. 2023 will be “tougher” than last year as the US, European Union (EU), and China will see their economies slow down, she added. Global growth is forecast to slow from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023.

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JSW Group plans to foray into EVs

JSW Group is considering a foray into the manufacturing of electric vehicles (EVs), said Group Chief Financing Officer Seshagiri Rao. The group is looking to manufacture four-wheelers. The EV manufacturing plan is being discussed actively at the group level, he said while revealing JSW Group’s aim to expand its presence into more sectors.

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Dabur acquires a 51% stake in Badshah Masala

FMCG firm Dabur India has completed the acquisition of a 51% stake in Badshah Masala Private Ltd for Rs 587.52 crore.  Badshah Masala manufactures, markets, and exports ground spices, blended spices, and seasonings. Dabur will acquire the remaining 49% stake over the next five years.

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PSP Projects emerges lowest bidder for ₹1,364 crore govt project

PSP Projects Ltd has emerged as the lowest bidder for a government project worth  ₹1,364.47 crore in Surat, Gujarat. The company will construct a high-rise office building for Surat Municipal Corporation. PSP Projects is a multi-disciplinary construction company that engages in industrial, institutional, and residential projects in India.

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APL Apollo posts 50% growth in sales volume in Q3

Structural steel tube company APL Apollo Tubes Ltd. registered its highest quarterly sales volume of 6,05,049 tonnes in the quarter ended Dec (Q2 FY23), showing a 50% YoY growth. The sales volume for the first nine months of the current financial year rose by 35% to 16,30,120 tonnes. APL Apollo Tubes operates 11 manufacturing facilities with a total capacity of 2.6 million tonnes. 

Read more here.

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WPI Eases to 10.7% in Sept – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

WPI eases to 10.7% in September

India’s wholesale inflation, measured by the Wholesale Price Index (WPI), eased to 10.70% in September. WPI had spiked to 12.41% in August, while the revised WPI for July stood at 14.07%. The food articles segment eased to 11.03% in September, compared to 12.37% in August. The fuel and power segment marginally fell from 33.67% in August to 32.61% last month. 

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Federal Bank Q2 Results: Net profit rises 53% YoY to ₹704 crore

Federal Bank posted its highest-ever quarterly profit of ₹704 crore for the quarter ended September (Q2 FY23), up 53% YoY or 17% QoQ. The net interest income (NII) grew 19% YoY to ₹1,762 crore during the same period. [NII is the difference between the interest income a bank received on loans and the interest it pays depositors.] The gross non-performing assets ratio (GNPA) stood at 2.46% in Q2, compared to 2.69% in Q1. Provisions fell 9% YoY to ₹268 crore in Q2 FY23.

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PSP Projects emerges lowest bidder for project in Gujarat

PSP Projects Ltd has emerged as the lowest (L1) bidder for a government project for developing a world-class sustainable tourist/pilgrimage destination in Gujarat. The bid value for the project is worth ₹345.30 crore. PSP Projects is one of India’s fastest-growing construction companies based in Ahmedabad, Gujarat. It provides construction services for industrial, institutional, residential, and commercial projects in India. 

Bajaj Auto Q2 Results: Net profit rises 20% YoY to ₹1,530 crore

Bajaj Auto Ltd reported a 20% YoY increase in net profit to ₹1,530 crore for the quarter ended September (Q2 FY23). Its revenue from operations rose 16.4% YoY to ₹10,202.8 crore during the same period. EBITDA rose 25.5% YoY to ₹1,759 crore. The company sold 11,51,012 units in Q2, up 0.57% YoY. Bajaj Auto saw domestic volumes nearly double from Q1 across both two-wheeler and three-wheeler segments.

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EaseMyTrip launches SIP scheme for travel plans

Online travel platform EaseMyTrip has announced the launch of a new product line— Save Now Buy Later (SNBL). It is an investment scheme that allows customers to start a Systematic Investment Plan (SIP) for their travel plans. Customers can invest an amount as low as ₹100 on a recurring basis. Investments will get a return of up to 20% on the total invested amount exclusively from the company.

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Unichem Labs gets USFDA approval for Phenytoin Sodium capsules

Unichem Laboratories Ltd has received abbreviated new drug application (ANDA) approval for its Extended Phenytoin Sodium Capsules USP- 100gms from the US Food & Drug Administration (USFDA). The capsules are indicated for the treatment of tonic-clonic and psychomotor seizures. It prevents seizures during or after neurosurgery. The product will be commercialised from Unichem Lab’s plant in Ghaziabad, Uttar Pradesh.

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Shree Cement Q2 Results: Net profit falls 67% YoY to ₹183 crore

Shree Cement Ltd reported a 67.5% YoY decline in consolidated net profit to ₹183.24 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 19.7% YoY to ₹4,038.03 crore during the same period. Total expenses increased by 41.4% YoY to ₹3956.90 crore in Q2. The company’s board has accepted the resignation of its long-serving Chairman Benu Gopal Bangur.

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L&T Construction secures order under its water and effluent treatment business

Larsen & Toubro Ltd’s construction arm has secured significant orders (in the range of ₹1,000-2,500 crore) under its water & effluent treatment business. It has received repeat orders from the Govt. of Gujarat to execute pumping system and pipeline works from Tappar Dam to Nirona Dam. The project aims to strengthen water resources in the Kutch district of Gujarat by filling existing reservoirs that will irrigate 36,392 hectares of land.

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Bharti Airtel launches ‘Always On’ IoT connectivity solution

Bharti Airtel launched the ‘Always On’ Internet of Things (IoT) connectivity solution in the domestic market. The solution contains dual profile M2M (machine to machine) eSim, which allows an IoT device to stay connected to a mobile network from different Mobile Network Operators in the eSIM. It is best suited for vehicle tracking providers, auto manufacturers, and any use cases where equipment works in remote locations requiring universal connectivity.

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Tata Elxsi Q2 Results: Net profit rises 39% YoY to ₹174 crore

Tata Elxsi Ltd reported a 39.1% YoY increase in net profit to ₹174.3 crore for the quarter ended Sept (Q2 FY23). Net profit declined by 5.5% when compared to the previous quarter. Its revenue from operations rose 28.2% YoY (or 5.1% QoQ) to ₹763.2 crore during the same period. The company crossed the 11,000-employee mark with 1,532 net additions in Q2.

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Jet Airways Relaunch Faces Delays – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Jet Airways facing more delays: CEO Sanjiv Kapoor

Jet Airways Ltd’s potential new owners, the Jalan-Kalrock consortium, have been trying to relaunch operations this month. However, the airline faces more delays due to unresolved negotiations between the management and engine makers on more favourable terms in its proposed leasing contracts. 

“We will start operations in a planned and phased manner and share details of our fleet, customer value proposition, and business model when we open for sale,” said CEO Sanjiv Kapoor.

Read more here.

AGEL commissions 325 MW wind power project in Madhya Pradesh

Adani Green Energy Ltd (AGEL) has commissioned a 325 megawatts (MW) wind energy plant in Dhar, Madhya Pradesh. The plant has two 25-year Power Purchase Agreements (PPAs) with Solar Energy Corporation of India (SECI) at a tariff of Rs 2.83 per kilowatt hour (kwh). The Adani Group will manage the newly commissioned plant via its ‘Energy Network Operation Centre’ platform.

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NARCL to buy 18 distressed accounts totalling ₹39,921 crore by Oct 1: Report

As per an ET Now report, the National Asset Reconstruction Company of India Ltd (NARCL) is preparing to acquire 18 distressed accounts worth ₹39,921 crore by October 31. The bad bank informed lenders that it has created two lists– Phase 1 comprised eight accounts with a debt of ₹16,744 crore. Phase 2 has 10 accounts with a debt of ₹18,177 crore.

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Welspun Corp secures order for pipeline project in the US

Welspun Corp has secured a significant order for a carbon capture pipeline project in the United States. The company will supply 785 miles (1,256 km) or 100,000 MT of high-frequency induction welding pipes. The pipes for the order will be produced at the company’s manufacturing plant in Little Rock, Arkansas, and executed in FY23-24.

Read more here.

Delhi HC allows Natco Pharma to launch Chlorantraniliprole

The Delhi High Court has allowed Natco Pharma to launch Chlorantraniliprole (CTPR) and its formulations through its non-infringing process. CTPR technical is formulated into broad-spectrum insecticides for pest management on a wide range of crops. Natco Pharma estimates the current market size of products containing CTPR in India to be over ₹2,000 crore.

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Hatsun Agro Products’ board approves rights issue of ₹400 crore

The Board of Directors of Hatsun Agro Products Ltd has approved the proposal for a rights issue aggregating to ₹400 crore. The issue will be available for all existing shareholders. The eligible shareholders will be determined on the record date, which the company will announce in due course. 

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Olectra secures order to supply 123 e-buses to Thane Municipal Transport Undertaking

A consortium formed by Olectra Greentech and EVEY Trans has secured an order for 123 electric buses from the Thane Municipal Transport Undertaking. EVEY Trans will procure these e-buses from Olectra Genentech and deliver them in nine months. Meanwhile, Olectra will maintain the buses during the contract period of 15 years. The total value of the order is ₹185 crore.

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Dixon Tech signs deal with Ibahn for advanced lighting technology

Dixon Technologies (India) Ltd has entered into a binding term sheet with Delhi-based Ibahn Illumination, whereby Ibahn has agreed to transfer its cutting-edge technologies of smart lighting solutions. Ibahn’s BLE Mesh Smart Lighting (app, firmware, hardware, and cloud-hosted database) provides consumers with Wi-Fi-based technology solutions for its lighting products.

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PSP Projects secures work orders worth ₹167 crore

PSP Projects Ltd has secured orders worth ₹167.35 crore in the industrial, precast and residential segments. This includes a major order to construct Phase 2 of a Noodle Factory from a repeat client. With receipt of the above orders, the total order inflow for FY2022-23 till date amounts to ₹1,511.58 crore.

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SEBI introduces framework to prevent misuse of clients’ securities by brokers

The Securities & Exchange Board of India (SEBI) has introduced a new framework that will prevent the misuse of clients’ securities and funds by their stock brokers. Under the framework, depositories need to validate the transfer instruction for pay-in of securities from client Demat accounts to trading member pool accounts against obligations received from the clearing corporations.

In other news, SEBI is looking to boost surveillance of social media and other platforms through a web intelligence tool. Using data analytics, the tool will help to investigate violations of various securities laws by individuals, groups, and other entities.

Read more here.

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IOCL Eyes Net Zero Carbon Emissions by 2046 – Top Indian Market Updates

A logo of Indian Oil is picture outside a fuel station in New Delhi, India August 29, 2016. REUTERS/Adnan Abidi/Files

Here are some of the major updates that could move the markets tomorrow:

Indian Oil Corp eyes net zero carbon emissions by 2046

Indian Oil Corporation Ltd (IOCL) aims to achieve net zero carbon emissions by 2046. The company has prepared a roadmap to achieve net zero Scope 1 and 2 emissions (relating to emissions from crude refining and energy consumption). IOCL is also targeting to replace at least a tenth of its current fossil-fuel-based hydrogen at its refineries with carbon-free green hydrogen.

Read more here.

HDFC Bank to acquire 9.94% stake in Go Digit Life Insurance

HDFC Bank plans to acquire a 9.94% stake in Go Digit Life Insurance Ltd, a company backed by Canada-based Fairfax Group. The bank has proposed an investment of Rs 49.9-69.9 crore (in two rounds) by subscribing to equity shares of the company. Go Digit Life Insurance is awaiting a certificate of registration by the Insurance Regulatory & Development Authority of India (IRDAI) to begin operations.

Read more here.

PSP Projects secures new orders worth ₹247 crore

PSP Projects Ltd has secured contracts worth ₹247.35 crore from the Precast and Government segments. The total order inflow for the financial year 2022-23 (FY23) to date amounts to Rs 1,344.24 crore. PSP Projects is one of the prominent contractors offering a diversified range of construction and allied services. It focuses on industrial, institutional, government, and residential projects.

Read more here.

Hero Electric, Jio-bp partner for two-wheeler EV adoption

Hero Electric has announced a partnership with Jio-bp to provide EV charging solutions. The electric scooter maker’s customers will get access to Jio-bp’s charging and battery swapping infrastructure. Both entities will bring the best of their global learnings in electrification and apply them to the Indian market to create a differentiated customer experience. Jio-bp is a joint venture between Reliance Industries Ltd and British oil giant BP 

Read more here.

REC’s subsidiary hands over project-specific SPV to PowerGrid

REC’s wholly-owned subsidiary, REC Power Development & Consultancy Ltd. (RECPDCL), has handed over the project-specific Special Purpose Vehicle (SPV) formed for the construction of a transmission project (Neemuch Transmission Ltd) to Power Grid Corporation of India Ltd. Power Grid emerged as the successful bidder of the Inter-State Transmission Project of the Ministry of Power, Government of India.

Nelco signs pact with Intelsat to offer in-flight connectivity in India’s airspace

US-based Intelsat has signed a commercial agreement with Nelco Ltd to offer inflight connectivity services in Indian skies. The agreement will benefit Intelsat’s airline partners and flyers as they will get end-to-end broadband coverage on domestic and international aircraft flying across the country. Intelsat joins companies such as Reliance Jio, Bharti Airtel, and Vi that have received prior approvals from the Indian govt to offer internet services on-board flights.

Read more here.

Indian Hotels looks at greenfield, brownfield opportunities in Gujarat

Indian Hotels Company Ltd (IHCL) is looking at growth opportunities in greenfield and brownfield projects to strengthen its footprint in Gujarat. The company is also looking at new commercial hubs like Bharuch and Vapi, wildlife destinations, and pilgrimages in the state. IHCL, which recently opened 111-room Ginger and 175-key Vivanta in Ahmedabad, has 19 properties in Gujarat. 

Read more here.

Listed private non-finance companies report 41% sales growth in Q1 FY23: RBI

A Reserve Bank of India (RBI) report stated that listed private non-financial companies recorded a 41% sales growth during the first quarter of FY23. The manufacturing segment posted sales growth of 41.6%, driven by broad-based demand expansion across industries due to volume and price effects. Sales growth of information technology (IT) firms stood at 21.3% in Q1 FY23.

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Lupin, I’rom signs licensing pact for Denosumab biosimilar in Japan

Lupin Ltd has entered into an exclusive licensing agreement with Japan-based I’rom Group Co. Ltd. The two entities will conduct clinical trials, register, distribute and market biosimilar Denosumab in Japan. Denosumab is used for the treatment of postmenopausal women with osteoporosis (bones becoming fragile) at high risk of fracture. It is also used to prevent skeletal-related events in patients with bone metastases.

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IGX to start LNG trade from October

The Indian Gas Exchange (IGX) is planning to start trade in liquefied natural gas (LNG) from October to help last-mile areas unconnected with pipelines get access to natural gas. Liquid gas will now be arranged at terminals. Buyers can take in LNG tankers to far-away locations (200-300 km) that are not yet connected with pipelines.

Read more here.

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Tata Elxsi’s Net Profit Rises 39% YoY in Q4 – Top Indian Market News

Tata Elxsi Q4 Results: Net profit rises 39% YoY to Rs 160 crore

Tata Elxsi Ltd reported a 39.95% YoY increase in net profit to Rs 160 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 31.51% YoY (or 7.3% QoQ) to Rs 681.7 crore during the same period. Tata Elxsi posted a 35% YoY increase in revenue to Rs 2,470.8 crore for FY 2021-22. Net profit stood at Rs 549.7 crore in FY22, up 49.3% YoY. The company’s board has declared a final dividend of Rs 42.5 per share.

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Future Group proposes to transfer 45% of its debt to Reliance: Report

Future Group has proposed to transfer 45% of its debt to the books of Reliance Industries Ltd on the sale of assets. However, lenders have not received any assurance from the hypermarket operator on whether the offer is endorsed by RIL. Against outstanding loans of Rs 28,921 crore owed by the 19 companies involved in the deal as of January 31, 2022, Future Group has proposed a transfer of Rs 12,612 crore owed to lenders and domestic & offshore bondholders to RIL.

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Alembic Pharma gets tentative approval for Ivabradine tablets

Alembic Pharmaceuticals Ltd has received tentative approval from the US Food & Drug Administration (USFDA) for Ivabradine tablets. The drug is indicated to reduce the risk of worsening heart failure in adult patients with stable, symptomatic chronic heart disease with left ventricular ejection fraction. According to IQVIA data, Ivabradine tablets had an estimated market size of $102 million for the 12 months ended December 2021.

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PSP Projects secured orders worth Rs 940 crore in FY22

PSP Projects Ltd received orders worth Rs 938.76 crore (including orders worth Rs 503.56 crore for the construction of a sports complex at Ahmedabad) in FY22. The total work orders at the end of FY 2021-22 stood at Rs 1,802.23 crore. The company has also secured orders worth Rs 327.4 crore in the current financial year (FY23).

ITC to commence 20th manufacturing facility in West Bengal

ITC Limited will set up a new state-of-the-art personal care manufacturing unit in Howrah, West Bengal. It will be ITC’s 20th facility in the state. The company is also in the process of commissioning a green building in the Rajarhat area. It will house the FMCG firm’s information technology arm ITC Infotech. Over the last few years, ITC has invested nearly Rs 4,500 crore in West Bengal.

Read more here.

Cement demand expected to grow 7-8% in FY23

As per an ICRA report, cement demand in India is expected to grow by 7-8% to ~382 million metric tonnes in the current financial year (FY23). This will be aided by strong demand from rural housing and infrastructure sectors. The recent budgetary allocation of over Rs 9.2 lakh crore towards agriculture, affordable housing, and capital expenditure could boost cement demand.

Read more here.

Mastek Q4 Results: Net profit rises 16.5% YoY to Rs 88.2 crore

Mastek Limited reported a 16.5% YoY increase in net profit to Rs 88.2 crore for the quarter ended March (Q4 FY22). Net profit grew 5.7% compared to the previous quarter. Its revenue from operations rose 20.3% YoY (or 5.4% QoQ) to Rs 581.5 crore during the same period. Mastek secured contracts worth more than $65 million in Q4 FY22. The IT company’s board has declared a final dividend of Rs 12 per share.

Read more here.

Ajanta Soya’s board approves 5:1 stock split

The Board of Directors of edible oils manufacturer Ajanta Soya Ltd has approved a stock split in the ratio of 5:1. For every one share held, investors will receive five shares after the split takes place. The record date for the purpose of the stock split will be intimated in due course. A stock split happens when a company increases the number of its shares to boost the stock’s liquidity. 

Read more here.

Nykaa partners with Aveda to launch premium salon chain

Nykaa has partnered with haircare brand Aveda to launch a premium salon chain across India. The first Aveda X Nykaa salon will be launched in Bengaluru on Thursday, followed by Delhi and Mumbai. The stores will house spa rooms, manicure/pedicure stations, and hair & makeup stations. The salons will offer Nykaa’s best-selling products and Aveda’s haircare range.

Read more here.

Domestic air passenger traffic rises 6.1% YoY in Q4

Domestic air passenger traffic in the January-March period (Q4 FY22) stood at 248 lakh, recording a 6.1% YoY growth. In March alone, domestic airlines carried 106.96 lakh passengers, a 36.7% YoY increase compared to Feb. IndiGo continued to maintain its leadership position in March with a market share of 54.8%. The data was released by the Directorate General of Civil Aviation (DGCA).

HDFC to sell 10% stake in HDFC Capital to ADIA

HDFC Ltd will sell a 10% stake in private equity arm HDFC Capital Advisors Ltd. to a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) for ~Rs 184 crore. ADIA is also the primary investor in the alternative investment funds managed by $3-billion HDFC Capital.

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Market News Top 10 News

Reliance to Step Up Fuel Exports to Europe – Top Indian Market News

Reliance Industries to step up fuel exports to Europe

As per reports, Reliance Industries Ltd’s Jamnagar facility is lifting crude processing and deferring planned maintenance to take advantage of surging demand for diesel in Europe. RIL is already sending shipments of the fuel to Europe. The complex in Gujarat can process 1.36 million barrels of crude per day from two refineries and can export most of the fuel. 

Various Asian refiners are looking to send diesel abroad as crude oil prices surge in Europe following Russia’s invasion of Ukraine.

Read more here.

Coal India receives 100% booking in its first single-window e-auction

Coal India Ltd’s first-ever offer of nearly 5.2 lakh tonnes (LT) of coal under the single-window e-auction received an encouraging response from coal consumers. 100% of the offered quantity was booked. After the merger of multiple auction windows into a solitary outlet, CIL conducted an e-auction in two of its subsidiaries on March 3, 2022. 

Cyient partners with iBASEt to drive business growth

Cyient has entered into a strategic partnership with iBASEt, a company that simplifies how complex products are built and maintained. iBASEt’s industry-leading manufacturing software solutions complement Cyient’s experience in implementing manufacturing execution solutions. 

Read more here.

L&T Construction bags significant order from Delhi Metro

The heavy civil infrastructure business vertical of L&T Construction has won a significant order (in the range of Rs 1,000-2,500 crore) from the Delhi Metro Rail Corporation Ltd (DMRC). The scope of work includes the design and construction of 5 km of twin tunnel by shield tunnel boring machine, underground ramp, and four stations. The project is funded by Japan International Cooperation Agency (JICA).

Read more here.

Expedia selects RateGain as a preferred connectivity partner

RateGain Travel Technologies Ltd announced its preferred connectivity partner status with Expedia Group. The company will work with the leadership team of Expedia Group to provide feedback and help shape future products and technology solutions. The Expedia Group Connectivity Partner Programme recognizes and rewards top connectivity providers, including channel managers, property management systems, and central reservation systems.

Read more here.

PSP Projects secures order worth Rs 564 crore

PSP Projects Ltd has emerged as the lowest (L-1) bidder for a construction project in Gujarat. The order comprises the construction of a sports complex in Ahmedabad. The bid value of the project is Rs 563.99 crore. PSP Projects offers a wide range of construction and allied services for industrial, residential, and government residential projects in India.

Hatsun Agro to sell RTE business, Oyalo brand to Naga Ltd

Hatsun Agro Product Ltd (HAPL) has entered into a pact with Naga Ltd. to sell its Ready to Eat (RTE) business and ‘Oyalo’ brand for Rs 25 crore. The transaction will be effective by end of April 2022. As of March 2021, RTE’s net worth (based on the gross value of assets) was Rs 59.87 crore (5.86% of the net worth of the company). HAPL’s net worth stood at Rs 1,021.51 crore.

Read more here.

J. Kumar Infra secures orders worth Rs 2,032 crore

J. Kumar Infraprojects Ltd has secured a work order from Pune Municipal Corporation for the development of the Mula Mutha river from Bund Garden Bridge to Mundhwa under the Pune river rejuvenation project. The order is worth Rs 604.75 crore. The company has also won an order worth Rs 1,426.99 crore for designing and constructing twin tunnels and four underground stations of Phase-IV of Delhi Metro.

Read more here.

Vodafone UK in talks to sell remaining 21% in Indus Towers

As per an ET report, Vodafone Group Plc is in advanced talks with American Tower Co (ATC), Crown Castle International, Brookfield, and others to sell its remaining 21% stake in Indus Towers through block deals. Vodafone UK’s residual stake of 56.72 lakh shares in Indus Towers is valued at ~Rs 11,571 crore. Once Vodafone sells its stake in Indus Towers, it will mark the company’s exit from the passive telecom infrastructure business in India.

Read more here.

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Market News Top 10 News

IMF Retains India’s Growth Forecast for 2021 at 9.5% – Top Indian Market News

IMF retains India’s growth forecast for 2021 at 9.5%

The International Monetary Fund (IMF) has retained India’s gross domestic product (GDP) growth forecasts at 9.5% in 2021 and 8.5% for 2022. However, IMF has lowered its projection for global growth this year as supply disruptions impacted growth outlook for advanced economies, and pandemic dynamics have worsened in low-income economies. It projects world economic growth at 5.9% for 2021. 

Read more here.

Tata Power Solar secures orders worth Rs 538 crore from EESL

Tata Power Solar has received a Letter of Award (LoA) from state-run Energy Efficiency Services Ltd (EESL) to build 100 megawatt (MW) distributed ground-mounted solar projects in Maharashtra. The total order value of the projects is Rs 538 crore. The commissioning date of the solar projects is set for 12 months. The utility-scale order book of Tata Power Solar now stands at nearly 4 gigawatt capacity with a value of Rs 9,264 crore.

Read more here.

PSP Projects declared lowest bidder for housing project in Uttar Pradesh

PSP Projects Ltd has emerged as the lowest (L-1) bidder for a government residential project in Uttar Pradesh. The bid value of the project is Rs 238.7 crore. PSP Projects is a multidisciplinary construction company that offers a diversified range of construction and allied services across industrial, institutional, and residential projects in India. To learn more about the company, click here.

Read more here.

L&T Construction secures significant orders for various businesses

Larsen & Toubro’s (L&T) construction arm has secured significant orders (in the range of Rs 1,000-2,500 crore) for its various businesses. In the metallurgical and material handling (MMH) business, the company has secured an order to set up a coke oven, by-product, and coke dry quenching plants. The buildings and factories business has won an order from a ‘prestigious client’ for the construction of office space at Hyderabad with an approximate built-up area of 20 lakh sq. ft.

Read more here.

CONCOR’s physical volumes handled rises 11% YoY in Q2

Container Corporation of India’s (CONCOR) total physical volumes handled increased by 10.74% YoY to 9,80,757 twenty-foot equivalent units (TEUs) in Q2 FY22. However, physical volumes have declined by 1.11% compared to the previous quarter. Domestic physical volumes rose 33.68% YoY to 1,88,332 TEUs. Meanwhile, export-import (EXIM) physical volumes improved by 6.4% YoY to 7,92,425 TEUs during the same period.

Read more here.

BLS International to process Brazilian visas in India

The Embassy of Brazil in India has authorised BLS International Services Ltd to process visa applications. The company will accept visa applications from centres in Delhi and Mumbai. BLS will initiate Brazil visa processing, along with several convenience services such as photocopy, courier, and form filling. BLS International Services is a global services partner for governments and citizens in the domain of visa, passport, consular, and e-governance services.

Read more here.

Govt grants “Maharatna” status to Power Finance Corporation

The government has granted the ”Maharatna” status to state-owned Power Finance Corporation (PFC). This move will give the company greater operational and financial autonomy. The board of a Maharatna enterprise can make equity investments to undertake financial joint ventures and subsidiaries, undertake mergers and acquisitions in India and abroad. PFC is the largest infrastructure finance company dedicated to the power sector under the administrative control of the Ministry of Power.

Read more here.

Bhansali Engineering Q2 Results: Net profit jumps 248% YoY to Rs 123.66 crore

Bhansali Engineering Polymers reported a 248.3% YoY jump in consolidated net profit to Rs 123.66 crore for the quarter ended Sept (Q2 FY22). Net profit increased by 59.8% when compared to the previous quarter. Its total income rose by 22.21% YoY (or 59.76% QoQ) to Rs 378.30 crore during the same period. The company’s board has declared an interim dividend of Rs 1 per share.

TPG Rise Climate, ADQ to invest $1 billion in Tata Motors’ new EV unit

Tata Motors said it will be creating a new electric vehicles (EV) subsidiary that will require over Rs 16,000 crore of investment over the next five years. TPG Rise Climate and Abu Dhabi’s ADQ will be investing $1 billion (~Rs 7,500 crore) for an 11-15% stake in this subsidiary. The investment will value the subsidiary (TML EVCo) at ~$9.1 billion. The company will be asset-light, and all the investment will be going towards creating intellectual property such as new vehicle designs and EV platforms.

Read more here.

Ujjivan SFB’s total deposits grow 31% YoY to Rs 14,090 crore in Q2

Ujjivan Small Finance Bank reported a 31% YoY growth in total deposits to Rs 14,090 crore in Q2 FY22. The bank’s disbursements jumped 114% YoY (or 138% QoQ) to Rs 3,122 crore during the same period. The gross loan book stood at Rs 14,508 crore at the end of the July-Sept quarter, up 4% YoY and 3% quarter-on-quarter (QoQ). Retail deposits saw a 38% YoY and 12% QoQ growth to Rs 7,270 crore in Q2 FY22.

Read more here.

Factory output surges 11.9% in August

India’s Index of Industrial Production (IIP) grew by 11.9% in August 2021. This is an increase of 0.4% from July. IIP grew on the back of a low base last year when factory output was -7.6% in August 2020. The manufacturing sector, which constitutes 77.63% of the IIP, grew 9.7% in August. The mining sector output rose 23.6% in August, while power generation increased 16%.

Read more here.

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Market News Top 10 News

Zydus Cadila to Seek EUA for ZyCoV-D in 7-8 Days – Top Indian Market News

Some ampoules with ncov-2019 vaccine in a box. to fight the coronavirus pandemic.

Zydus Cadila to seek EUA for ZyCoV-D vaccine in 7-8 Days

Zydus Cadila has informed the Centre that it could apply for emergency use authorisation (EUA) for the ZyCoV-D vaccine in the next 7-8 days. ZyCoV-D is a DNA Covid-19 vaccine, which carries the genetic code for that part of a virus that triggers the immune system of the body. It is the second vaccine to be made in India after Bharat Biotech’s Covaxin. The vaccine is being developed with support from the Centre’s National Biopharma Mission. The pharma company has enrolled more than 28,000 volunteers in their Phase-3 study.

Read more here.

Tata Motors, Tata Power jointly inaugurate solar carport in Pune

Tata Motors and Tata Power Company have announced the inauguration of India’s largest solar carport in Pune. The 6.2-megawatt peak (MWp) solar carport deployed by Tata Power will generate 86.4 lakh kilowatt-hour (kWh) of electricity per year. It is estimated to reduce 7,000 tons of carbon emissions annually. The carport (spanning over 30,000 square metres) will generate green power and provide covered parking for finished cars at Tata Motors’ car plant in Chikhali, Pune.

Read more here.

Minda Industries raises Rs 50 crore via issuance of commercial papers

Minda Industries has raised Rs 50 crore through the issuance of commercial papers. The auto components manufacturer said this fund-raising is in line with the management’s efforts to bring down finance costs. In May 2021, the company’s board had approved the acquisition of a 27.55% stake in CSE Dakshina Solar for Rs 27 lakh. This acquisition is for availing solar power from CSE Dakshina for Minda Industries’ units in Tamil Nadu.

Read more here.

PSP Projects Q4 Results: Net profit rises 22.38% YoY to Rs 41.73 crore

PSP Projects Ltd reported a 22.38% YoY increase in consolidated net profit to Rs 41.73 crore for the quarter ended March (Q4). Net profit has increased by 43.11% when compared to the previous quarter. Its total income rose 8.73% YoY to Rs 504.36 crore during the same period. Net profit for the financial year 2020-21 (FY21) declined by 36.55% YoY to Rs 81.52 crore. The construction company’s board has recommended a final dividend of Rs 4 per share.

Read more here.

Aster DM Healthcare partners with Dr. Reddy’s to administer Sputnik V vaccine in select locations

Aster DM Healthcare has entered into a partnership with Dr. Reddy’s Laboratories to administer the Sputnik V Covid-19 vaccine as part of a limited pilot soft launch. The healthcare provider will initially administer the vaccine to beneficiaries in Kochi and Kolhapur (Maharashtra). Aster has trained over a hundred staff at 14 of its hospitals to administer the vaccine jab. Dr. Reddy’s Laboratories has facilitated the necessary cold storage infrastructure for vaccine storage at the selected hospitals of Aster DM Healthcare.

Read more here.

Eveready Industries Q4 Results: Net loss at Rs 441 crore

Eveready Industries India reported a standalone net loss of Rs 441.19 crore for the quarter ended March 2021 (Q4 FY21). It had posted a net loss of Rs 63.73 crore in the corresponding quarter last year (Q4 FY20). Its revenue from operations increased by 21.6% YoY to Rs 272.63 crore in Q4 FY21. Net loss for the financial year ended March 31, 2021 (FY21) stood at Rs 309.13 crore. This is compared to a net profit of Rs 179.57 crore in FY20.

Read more here.

Hinduja Global Solutions Q4 Results: Net profit jumps 203% YoY to Rs 131.26 crore

Hinduja Global Solutions Ltd reported a 203.3% YoY jump in consolidated net profit to Rs 131.26 crore for the quarter ended March (Q4). Net profit has increased by 74.14% when compared to the previous quarter. Its revenue from operations rose 21.6% YoY to Rs 1,563.5 crore during the same period. Net profit for the financial year 2020-21 (FY21) increased by 66.41% YoY to Rs 336.05 crore. The IT service provider’s board has recommended a final dividend of Rs 22 per share.

RBI grants in-principle approval to Centrum Financial Services to set up SFB

The Reserve Bank of India (RBI) has granted in-principal approval to Centrum Financial Services Ltd to set up a small finance bank (SFB). The approval has been given to Centrum in accordance with the offer it made in response to the Expression of Interest (EoI) to take over the troubled Punjab and Maharashtra Cooperative Bank (PMC). According to reports, both Centrum and BharatPe will hold a 50% stake in the SFB, and assets and liabilities of PMC will be transferred to the SFB.

Read more here.

Ashoka Buildcon Q4 Results: Net profit rises 6% YoY to Rs 142 crore

Ashoka Buildcon Ltd reported a 5.87% YoY increase in consolidated net profit to Rs 142.46 crore for the quarter ended March (Q4). Net profit has increased by 61% when compared to the previous quarter. Its revenue from operations rose 9.55% YoY to Rs 1,735.57 crore during the same period. Net profit for the financial year 2020-21 (FY21) increased by 67.08% YoY to Rs 276.22 crore. Maharashtra-based Ashoka Buildcon is an infrastructure development company. It is one of the leading highway developers in India.

Read more here.

Paytm to raise Rs 12,000 crore via issue of fresh equity shares

One97 Communications, the parent company of Paytm, has announced plans to raise Rs 12,000 crore by issuing fresh equity shares. Paytm’s founder Vijay Shekhar Sharma may also get declassified as a promoter of the company in accordance with market regulator SEBI’s public listing rules. The company’s much-awaited IPO is expected to launch by November.

Read more here.

IPO Updates: 

Dodla Dairy

The Rs 520-crore IPO of Dodla Dairy Ltd was subscribed 45.62 times on the final day of bidding. The portion reserved for retail investors was subscribed 11.34 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 73.26 times and that of qualified institutional buyers (QIBs) 84.88 times. You can learn more about the IPO here.

KIMS 

The Rs 2,144-crore IPO of Krishna Institute of Medical Sciences Ltd was subscribed 3.86 times on the final day of bidding. The portion reserved for retail investors was subscribed 2.9 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 1.89 times and that of qualified institutional buyers (QIBs) 5.26 times. You can learn more about the IPO here.

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Editorial

PSP Projects Limited, The Next Infra MultiBagger?

PSP Projects, a construction company, has been all over the news in recent weeks for securing large orders that tend to be higher than its overall market capitalization. Let us dive deep into the specifics regarding this highly-promising firm.

Company Profile – PSP Projects Ltd

PSP Projects Limited is one of India’s fastest-growing construction companies based in Ahmedabad, Gujarat. It was incorporated in 2008. The company provides construction services for industrial, institutional, residential, social infrastructure, and commercial projects in India. It constructs industrial buildings for pharmaceutical plants, food processing units, and manufacturing and processing facilities. It is also engaged in the construction of buildings for hospitals and healthcare services, educational institutions, malls, hospitality services, and corporate offices. PSP Projects undertakes central and state government projects and constructs buildings for group housing and townships.

PSP Projects has established itself as one of the most professionally-managed infrastructure companies in India. Prahaladbhai Shivrambhai Patel, the CEO and Chairman & Managing Director, has over 20 years of experience in the field of civil construction. He has played a significant role in the development of the company. Patel holds a majority stake (~51%) in the company. The total promoter shareholding stands at 74.18%.

Source: PSP Project’s Annual Report 2019-20

Recently, the company said it would acquire the remaining 26% stake in PSP Projects & Proactive Constructions Pvt Ltd.

Financial Performance

Over the last 5 years, PSP Projects’ revenue has grown at a yearly rate of 39.64%, whereas the industry average stood at 5.03%. During the same period, the company’s profit has shown an impressive CAGR of 56.22%. Its return on capital employed (ROCE) is 40.67%, which is very high compared to its competitors in the construction industry. This means that for every Rs 100 worth of capital employed, PSP Projects earns Rs 40.6 on it. The company has also been maintaining a healthy dividend payout over the years. In a highly competitive industry, the company has been able to obtain a market share of only 0.53%. PSP Projects has managed to control its debt through strong cash flows.

PSP Projects reported a 44% year-on-year (YoY) increase in revenue at Rs 1,499.26 crore for the financial year ended March 31, 2020. This is the highest-ever revenue it has achieved since its inception in 2008. It had posted a net profit of Rs 129.13 crore for the same period.

Now, let us look at the construction company’s financial performance in Q3 FY21. PSP Projects reported a 20.13% YoY decline in net profit to Rs 29.17 crore for the quarter ended December (Q3). It had posted a net profit of Rs 36.52 crore in the corresponding quarter last year. The company’s total revenue declined 7.78% YoY to Rs 390.16 crore. However, the company has ramped up its construction activities and is all set to complete projects in the months to come.

Massive Orders

As of March 31, 2020, PSP Projects Ltd had completed a total of 143 projects. This included 55 industrial projects and 21 government projects. The company has also constructed hospitals, educational institutions, commercial spaces, and corporate offices in Gujarat and nearby states. They continue to receive contracts from large pharmaceutical companies for setting up manufacturing plants. 

The company is currently constructing the world’s biggest office complex – The Surat Diamond Bourse – in Khadoj DREAM City, Gujarat. It has a contract value of Rs 1,575 crore and a built-up area of 66 lakh sq. ft. PSP Projects is also constructing large housing projects in Maharashtra, and medical colleges/hospitals in Gujarat.

Source: PSP Projects – Annual Report 2019-2020

Recent Announcements

On February 4, 2021, PSP Projects announced that it received a Letter of Intent (LOI) for a project worth Rs 588.62 crore from a private developer in Ahmedabad. Further, the company has been ranked the L1 bidder (Lowest Bidder) by a regulatory authority for projects totaling to Rs 1,249.41 crore. The project consists of the construction of medical colleges at multiple locations in Uttar Pradesh. 

The company received large orders on February 5 as well. It has secured an additional work order worth Rs 236 crore for an institutional project in Gujarat. Also, PSP Projects has emerged as the L1 bidder by a regulatory authority for projects totaling Rs 420.89 crore for the construction of medical colleges in Uttar Pradesh.

PSP Project’s share price had surged by 16% since these announcements took place.

Source: TradingView

Is PSP Projects Undervalued?

Since April 2020, the share price of PSP Projects has increased by 53%. It has a market capitalization of ~Rs 1,710 crore. However, based on the large order book and strong overall revenues (which are higher than the market cap), it feels that the stock is undervalued. 

However, the Price to Earnings (P/E) ratio is 24.1, which is quite high as compared to its peers. This is compared to industry leader Larsen & Toubro’s (L&T) PE ratio of 19.04 and GMR Infra’s PE ratio of -5.3. PE ratio relates a company’s share price to its earnings per share. A higher P/E ratio shows investors are willing to pay a higher price because of better future growth expectations. 

The company’s Price to Book (P/B) ratio stands at 3.8, which is quite high when compared to the industry average. The P/B ratio compares a company’s market value to its book value. It indicates the inherent value of a company and is the measure of the price that investors are ready to pay even for no growth in the business. [The market value of a company is its share price multiplied by the number of outstanding shares. The book value is the net assets of a company]. But this might change with the company’s next quarterly or annual result.

As we can see, PSP Project’s growth over the years has been driven by a strong management team, high sales revenue, and cost-control measures. It has become the go-to company for large infrastructure projects in Gujarat and surrounding areas. Can it become the next L&T? The recent orders received by the company has boosted investor sentiments. Let us look forward to seeing how the company aims to further secure its position in the highly-competitive construction industry.