⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PRAJIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | PRAJIND | Market Cap | 5,267 Cr. | Current Price | 286 ₹ | High / Low | 640 ₹ |
| Stock P/E | 29.9 | Book Value | 74.5 ₹ | Dividend Yield | 2.10 % | ROCE | 23.6 % |
| ROE | 18.2 % | Face Value | 2.00 ₹ | DMA 50 | 315 ₹ | DMA 200 | 403 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | -1.19 % | PAT Qtr | 41.7 Cr. | PAT Prev Qtr | 20.0 Cr. |
| RSI | 39.6 | MACD | -10.6 | Volume | 6,02,937 | Avg Vol 1Wk | 8,28,538 |
| Low price | 273 ₹ | High price | 640 ₹ | PEG Ratio | 1.41 | Debt to equity | 0.05 |
| 52w Index | 3.42 % | Qtr Profit Var | -28.0 % | EPS | 9.59 ₹ | Industry PE | 29.2 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT at ₹41.7 Cr, up from ₹20 Cr sequentially, but YoY profit variation shows -28% decline. EPS at ₹9.59 indicates moderate earnings power.
- Margins: ROCE at 23.6% and ROE at 18.2% reflect strong efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.05 shows negligible leverage, enhancing financial stability.
- Cash Flows: Healthy operating cash generation implied by low debt and consistent profitability.
💹 Valuation Indicators
- P/E Ratio: 29.9, nearly aligned with industry average of 29.2, suggesting fair valuation.
- P/B Ratio: Current price ₹286 vs. book value ₹74.5 → ~3.8x, moderately expensive relative to assets.
- PEG Ratio: 1.41, reasonable, showing growth-adjusted valuation is balanced.
- Intrinsic Value: Fairly valued at current levels, with limited margin of safety.
🏢 Business Model & Competitive Advantage
- Praj Industries operates in bioenergy, engineering, and environmental solutions, with strong focus on ethanol and renewable technologies.
- Competitive advantage lies in innovation, sustainability-driven projects, and leadership in biofuel technology.
- Business model benefits from government push for green energy and ethanol blending programs.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹270 – ₹285, near 52-week low and below DMA50.
- Long-Term Holding: Suitable for investors seeking exposure to renewable energy growth, though volatility in earnings must be monitored.
✅ Positive
- High ROCE and ROE indicate strong operational efficiency.
- Negligible debt ensures financial resilience.
- Dividend yield of 2.10% provides steady income.
⚠️ Limitation
- Quarterly profit variation shows -28% decline YoY.
- Stock trading below DMA200 indicates weak momentum.
- Institutional holdings declined (FII -0.21%, DII -1.19%).
📉 Company Negative News
- Decline in institutional investor confidence with reduced FII and DII holdings.
- Profit variation negative YoY despite sequential improvement.
- Stock has underperformed with only 3.42% gain over 52 weeks.
📈 Company Positive News
- Sequential PAT growth from ₹20 Cr to ₹41.7 Cr.
- Strong efficiency metrics with ROCE at 23.6% and ROE at 18.2%.
- Dividend yield of 2.10% adds investor appeal.
🏭 Industry
- Renewable energy and engineering sector trades at industry PE of 29.2, aligned with Praj’s valuation.
- Sector growth supported by government initiatives in ethanol blending and sustainability projects.
🔎 Conclusion
- Praj Industries is financially stable with negligible debt and strong efficiency ratios.
- Valuation is fair but earnings volatility and weak momentum limit near-term upside.
- Best suited for long-term investors seeking exposure to renewable energy, with entry around ₹270 – ₹285 offering a reasonable margin of safety.
Would you like me to also prepare a comparative HTML snapshot of Praj Industries versus Shree Renuka Sugars, since both are key players in ethanol and bioenergy but differ in scale and risk profile?