PSP Projects – Construction Company

I exited my holdings for PSP yesterday.
Thesis for entering the stock (some 6 months ago) :
PSP came across as a company hungry for growth, with a solid track record of timely execution and a negative cash conversion cycle. With the growth happening in Gujrat and UP, the company appeared to be a beneficiary of urbanization theme.

Thesis for exiting just days ago:

• Primarily I saw a number of issues related to failures in either execution or challenges from the clients who delayed payments / cancelled projects etc. Plus the order book growth started to stall.
• Uncertainity with respect to case with Adani
• Finally, there are other good buys in the EPC space which are somewhat better with respect to order book growth and the business uncertainties.