Shares of PSP Projects rallied 5% in intraday trade on Tuesday to hit an all-time high of Rs 747.40 after the company emerged as the lowest bidder (L1) for government projects worth Rs 1,364.5 crore (excluding GST) to construct a state-of-the-art high-rise office building in Surat, Gujarat.

Shares of the civil construction company surpassed the previous high of Rs 746.50 touched on December 20, 2022. It was up 3.3% at Rs 732 at 9.54 am, while the S&P BSE Sensex gained 0.04%.

PSP Projects’ order book stood at Rs 5,081 crore (2.9x TTM revenue) on September 30, 2022. Moreover, the company further strengthened its order book by securing orders worth around Rs 2,045 crore after the second quarter of FY23. Overall, the total order inflow in FY23 was Rs 3,310 crore.

PSP Projects guided for gross inflows of Rs 2,500-3,000 crore for FY23E (compared to Rs 1,802 crore for projects acquired in FY22). ICICI Securities analysts believe that the current capital inflow has exceeded the overall inflow target, boosting the visibility of overall revenue growth in FY24.

“The company is likely to witness a strong growth trajectory, better opportunities from government and private clients, expansion into different states and higher qualifications for larger scale projects,” the brokerage said.

Meanwhile, PSP Projects has outperformed the market over the past month, with shares surging 18% compared with a 3% drop in the S&P BSE Sensex.

On December 15, CARE Ratings reaffirmed PSP Projects’ credit ratings on its long-term and short-term bank loans based on recent company operations and financial performance developments. Analysts expect PSP to benefit in the medium term from the government’s boost to the healthcare and education sectors and the redevelopment of large government buildings under the Central Vista project.

Meanwhile, analysts at IDBI Capital PSP Projects believe that actual inflows as L1 could be Rs 3,500 crore, with few orders in the early stages.

“Maintain revenue growth guidance. After a weak Q2FY23, execution has picked up, implying over 35% YoY revenue growth in H2FY23,” the brokerage said.