PRAJIND - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 3.8

📊 Fundamental Analysis of Praj Industries (PRAJIND)

Praj Industries is a mid-cap engineering and bioenergy company with strong ESG credentials and global reach. However, current metrics suggest caution

Metric Value Interpretation

ROE 14.1% Decent, but not exceptional

ROCE 17.9% Healthy operational efficiency

PEG Ratio 5.35 Significantly overvalued relative to growth

P/E Ratio 46.1 Expensive vs industry PE of 37.2

Dividend Yield 1.28% Moderate, not a major income play

Debt-to-Equity 0.14 Very low, strong balance sheet

EPS ₹11.9 Stable, but not high-growth currently

Qtr Profit Var -56.7% Sharp decline, signals near-term weakness

📈 Technical & Trend Analysis

Current Price: ₹470

52W High/Low: ₹875 / ₹441

DMA 50 / DMA 200: ₹497 / ₹565 — trading below both, indicating bearish trend

RSI (32.9): Oversold zone, may attract short-term buyers

MACD (-4.45): Bearish momentum

Volume: Above average, suggesting possible accumulation

🎯 Ideal Entry Price Zone

Given valuation and technical weakness, ideal entry zones are

₹440–₹460: Near 52W low and oversold RSI

₹400–₹420: Deep value zone if broader market corrects

Avoid entry above ₹500 until fundamentals improve or breakout confirms.

🧭 Exit Strategy / Holding Period

If you already hold PRAJIND

Holding Period: Medium term (1–3 years) unless growth accelerates

Exit Strategy

Partial Exit: Near ₹600–₹650 if price rebounds and RSI crosses 60

Full Exit: If PEG remains >5 and ROE drops below 12%

Stop-Loss: ₹435 to protect downside

🚀 Long-Term Growth Catalysts

Bioenergy Leadership: Ethanol, BioCNG, and SAF (Sustainable Aviation Fuel) projects

Global Expansion: Projects in Paraguay, South America, and strategic MoUs with IATA & ISMA

Clean Tech Focus: Strong ESG alignment with India's green energy goals

Low Debt: Enables flexibility for capex and innovation

📈 2030 Target Price: ₹1,050–₹1,400

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📈 2035 Target Price: ₹2,800–₹5,100

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⚠️ Risks to Monitor

Valuation Stretch: PEG of 5.35 and P/E of 46.1 are high for current earnings

Profit Decline: -56.7% quarterly drop raises concerns

FII/DII Outflows: Institutional sentiment weakening

Execution Delays: Engineering segment facing capacity constraints

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Would you like a peer comparison with Thermax or Engineers India to assess relative value?

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bing.com

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stockpricearchive.com

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www.tickertape.in

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