Buy Praj Industries, target price Rs 2455: Prabhudas Lilladher

Synopsis

The stock is currently trading at PE of 31.6x/21.9x/20.9x FY23/24/25E. The brokerage has a buy rating on stock with TP of Rs520, valuing it at PE of 30x Sep24E.

Agencies
Promoters held 32.82 per cent stake in the company as of 30-Sep-2022, while FIIs owned 15.93 per cent, DIIs 10.33 per cent.

Prabhudas Lilladher has buy call on Praj Industries with a target price of Rs 520. The current market price of Praj Industries is Rs 383.

Praj Industries, incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 7054.35 Crore) operating in Engineering sector.

Praj Industries key Products/Revenue Segments include Scrap and Sale of services for the year ending 31-Mar-2022.

Financials


For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 882.74 Crore, up 20.04 % from last quarter Total Income of Rs 735.35 Crore and up 63.77 % from last year same quarter Total Income of Rs 539.00 Crore. Company has reported net profit after tax of Rs 48.13 Crore in latest quarter.

The company’s top management includes Dr.Pramod Chaudhari, Mr.Shishir Joshipura, Mr.Sachin Raole, Mr.Berjis Desai, Mr.Sivaramakrishnan S Iyer, Ms.Parimal Chaudhari, Dr.Shridhar Shukla, Mr.Suhas Baxi, Ms.Mrunalini Joshi. Company has P G Bhagwat as its auditors. As on 30-09-2022, the company has a total of 18 Crore shares outstanding.




Investment Rationale

The brokerage remains positive on Praj given its strong leadership in domestic ethanol plants (~60-65% market share), global presence (+100 countries), focus on future-ready technologies like 2G plants, Compressed Bio Gas (CBG) and diversification in Wastewater Treatment (ZLD), Critical Process Equipment’s & System (CPES) & HiPurity business. The stock is currently trading at PE of 31.6x/21.9x/20.9x FY23/24/25E. The brokerage has a buy rating on stock with TP of Rs520, valuing it at PE of 30x Sep24E.


Promoter/FII Holdings

Promoters held 32.82 per cent stake in the company as of 30-Sep-2022, while FIIs owned 15.93 per cent, DIIs 10.33 per cent.

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