Why Choice Broking Recommends a SELL on PSP Projects Ltd at ₹720 Target?
Choice Equity Broking has turned cautious on PSP Projects Ltd, revising its stance to a REDUCE rating with a target price of ₹720. This implies a potential downside of around 4.3% from the current market price of ₹751. The brokerage believes that near-term headwinds and stretched valuations could limit further upside for the stock.
Brokerage View: Choice Equity Broking
| Brokerage | Recommendation | Target Price | CMP | Upside / Downside |
| Choice Equity Broking | SELL / REDUCE | ₹720 | ₹751 | –4.3% |
Key Highlights from the Report
- PSP Projects is facing margin pressure due to rising raw material and labour costs.
- Execution delays in certain government contracts have impacted near-term earnings visibility.
- Order inflow momentum remains healthy but conversion timelines are uncertain.
- Valuations appear stretched after recent run-up, limiting potential upside in the medium term.
Company Overview
PSP Projects Ltd is an Ahmedabad-based EPC and civil construction company engaged in residential, institutional, and commercial projects. It has built a strong execution track record across Gujarat and other Indian states, with a diversified order book across government and private sectors.
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Analyst Commentary
Analysts at Choice Broking believe that while the company’s long-term fundamentals remain intact, the stock’s current valuation fully factors in growth expectations. The brokerage expects near-term volatility amid slower project execution and rising costs. Hence, investors are advised to book partial profits or avoid fresh entry at current levels.
Investor Takeaway
PSP Projects continues to hold a strong order book, but near-term execution challenges and cost pressures could weigh on margins. Given limited upside and rising competition in the EPC space, a cautious approach is prudent. Read more market updates and expert opinions at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
