Stock Snapshot
Price Performance
Recommendation Rationale
Growth opportunity tempered by near-term operational challenges.
Basis of our Recommendation
Praj Industries is navigating a challenging environment with declining revenue and profit, yet it maintains a strong order backlog and potential growth in the bioenergy sector. Recent project delays and cost pressures have led to margin contraction, but the company is focusing on high-value engineering to drive moderate growth.
Why We Like This Stock
- Strong order backlog supports future growth potential
- Positioned for growth in the bioenergy sector due to favorable policies
- Focus on high-value engineering may enhance revenue streams
Things To Watch Out For
- Declining revenue and profit impacting investor sentiment
- Margin contraction due to project delays and cost pressures
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,466 | 3,228 | 3,168 | 3,252 | 3,492 |
| Profit Before Tax (Cr.) | 365 | 252 | 76 | 130 | 155 |
| PBT Margin | 10.5% | 7.8% | 2.4% | 4.0% | 4.5% |
| Net Profit (Cr.) | 276 | 172 | -12 | 97 | 117 |
| EPS | 15.0 | 9.4 | -0.7 | 5.3 | 6.3 |
Company Overview
Show Company Profile
Praj Industries Limited operates in the field of bio-based technologies and engineering in India and internationally. The company offers solutions for the ethanol industry, including multi-feed multi-product plants, modernization of existing plants, and renewable fuels comprising BioCNG, iso-butanol, etc.; and high purity system solutions for the biopharma industry, sterile formulations, topical and oral formulations, personal care, and nutraceutical industry. It also provides customized plants, and equipment and technology solutions to customers in the brewing and beverage industry; reactors, pressure vessels, heat exchangers, columns, and proprietary equipment to hydrocarbon industry, petrochemicals, industrial gas plants, and chemical plants; and modular process packages. In addition, the company offers wastewater treatment solutions, including treatment and disposal; 3Rs of reduce, recycle, and reuse; ZLD and resource recovery; operation and maintenance services; and value added services. Praj Industries Limited was incorporated in 1985 and is headquartered in Pune, India.