PRAJIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.9

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📊 Fundamental Analysis Report

• Stock Code: PRAJIND
• Market Cap: ₹6,217 Cr
• Current Price: ₹338
• 52W High/Low: ₹875 / ₹328
• EPS: ₹10.5
• Stock P/E: 32.3 vs Industry P/E: 35.8 ✅
• PEG Ratio: 1.52 🟡 (Fairly Valued)
• Book Value: ₹76.9 | P/B Ratio: ~4.39 ❗
• ROE: 18.2% | ROCE: 23.6% 🔥
• Debt to Equity: 0.03 🟢 (Very Low Debt)
• Dividend Yield: 1.78% 💰
• Quarterly PAT: ₹20.0 Cr (↓66.1%)
• RSI: 38.2 | MACD: -9.11 📉

✅ Positive

• Strong ROE and ROCE indicate efficient capital deployment and profitability.
• Debt-free balance sheet enhances financial flexibility and reduces risk.
• Dividend yield of 1.78% adds to shareholder value.
• FII holding increased by 0.67%, showing foreign investor interest.

⚠️ Limitation

• Quarterly PAT dropped significantly from ₹59 Cr to ₹20 Cr, indicating earnings volatility.
• Price trading below both DMA 50 and 200, suggesting bearish trend.
• MACD and RSI indicate weak technical momentum.
• P/B ratio above 4 may deter value-focused investors.

📉 Company Negative News

• Quarterly profit variation of -71.3% raises concerns about operational consistency.
• DII holding declined by 2.60%, reflecting cautious domestic sentiment.

📈 Company Positive News

• Strong long-term fundamentals in bioenergy and engineering solutions.
• FII inflow suggests confidence in long-term growth potential.

🏦 Industry

• PRAJIND operates in the industrial biotechnology and engineering sector.
• Industry P/E of 35.8 aligns with PRAJIND’s valuation, suggesting fair pricing.
• Sector benefits from clean energy transition, ethanol blending, and sustainable technologies.

🧭 Conclusion

• Entry Zone: ₹320–₹335 (near support and RSI oversold)
• Long-Term View: Strong fundamentals and sectoral tailwinds make PRAJIND a promising long-term hold. Accumulate gradually, monitoring earnings recovery.