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PSP Projects Multibagger Analysis (Warren Buffet Way)

PSP Projects Multibagger Analysis (Warren Buffet Way)

In this post we can analyze PSP Projects based on Warren Buffet methodology.

NSE CodePSPPROJECT.NS
BSE Code540544
URLhttp://www.pspprojects.com/
CMP540
Free ReportYes
Publish DateOct-30-2019

PSP Projects is a multidisciplinary construction company offering a diversified range of construction and allied services across industrial, institutional, government, government residential and residential projects in India. They provide our services across the construction value chain, ranging from planning and design to construction and post-construction activities to private and public sector enterprises.

Warren Buffet, Value & Growth Checklist

Following are the Checklist parameters:

Capitalization2000 Croregreen
History of Consistently Increasing Sales, Earnings & Cash FlowYes.green
Durable Competitive AdvantageYes.green
Future Growth Drivers / Sector GrowthYes.green
Conservative Debt (long term debt < 3 Net Profit)No, company have slightly higher debtred
Debt Equity Ratio, Current RatioDebt Equity Ratio is 0.17

Current Ratio is 1.5

green
Return on Equity must be Above Average27% (Good)green
Low CAPEX required to maintain current operationsModerateyellow
Inventory Turnover Ratio, Debtor Days, ROCEModerateyellow
Management is holding / buying the stockYesgreen
Market Price < Intrinsic ValueYes. Intrinsic Value at Rs. 1128 Intrinsic Value Calculatorgreen
Stock Price is consolidating (now)No.  Price is at Peak levels due to QR Jumps which Indicate a 100% Returns on Bull Market. However a slash in earnings will cut 50% of Price too as we are currently in Bear Marketyellow
Stock Price is growing in past years along with EPS growthYes.green
Consolidated PE, PB Ratio, PEG RatioPE Good, PB is 5X,  PEG is goodyellow
Cash Flow Positive, Net Profit % greater than 8%Cash Flow: Negative

Net Profit: Yes

yellow
Paying Dividends, TaxYesgreen
EPS Growth Rate20% abovegreen
Jump in Trailing Result EPSYesgreen
Jump in Quarterly Result EPSYesgreen
Expected Gain in 5 Years300-500%green
Price Movement Graph, 52 Week High & LowOkaygreen
Volume Analysis13000yellow
Power of BrandYes, Company has good Brand & Promotersgreen
Corporate Governance, Reputation of LeadersYesgreen
Fraud reportedNo.green

Summary

Based on the above analysis we can see PSP Projects have Multibagger Stock properties & One can Invest during 2019 year.  Company aligns with Warren Buffet principles of Value & Growth Investing.  It  can be considered as Low Risk Moderate Returns investment.

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Disclaimer Futurecaps is an independent equity research team. Use of the information herein is at Investor’s own risk. This is not an offer to sell or solicitation to buy any securities and Futurecaps will not be liable for any losses incurred for the investment based on the advice.  The Investor is advised to do due diligence in the scrip mentioned.  None of Futurecaps Advisors hold 1% above Holdings of this company.

 

About Futurecaps

Futurecaps is a 12+ year experienced Indian Stock Market Advisory with SEBI Registration.

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