PSP Projects Limited (NSE:PSPPROJECT) Has Attractive Fundamentals

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PSP Projects Limited (NSE:PSPPROJECT) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of PSPPROJECT, it is a company with impressive financial health as well as a buoyant future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on PSP Projects here.

Exceptional growth potential with excellent balance sheet

PSPPROJECT is an attractive stock for growth-seeking investors, with an expected earnings growth of 26% in the upcoming year. Earnings growth is paired with an eye-catching top-line trajectory of 93%, which indicates a high-quality bottom-line expansion, as opposed to those driven simple by unsustainable cost-cutting activities. PSPPROJECT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that PSPPROJECT manages its cash and cost levels well, which is an important determinant of the company’s health. PSPPROJECT's has produced operating cash levels of 2.25x total debt over the past year, which implies that PSPPROJECT's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NSEI:PSPPROJECT Past and Future Earnings, April 2nd 2019
NSEI:PSPPROJECT Past and Future Earnings, April 2nd 2019

Next Steps:

For PSP Projects, I've compiled three essential aspects you should further research:

  1. Historical Performance: What has PSPPROJECT's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Valuation: What is PSPPROJECT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PSPPROJECT is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PSPPROJECT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.