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Check Before You Invest : Praj Industries Ltd

BSE: 522205 NSE: PRAJIND ISIN: INE074A01025
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Praj Industries Ltd belong to?
Praj Industries Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Praj Industries Ltd a good quality company?
Praj Industries Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Praj Industries Ltd undervalued or overvalued?
Praj Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Praj Industries Ltd a good buy now?
Praj Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Praj Industries Ltd?
Praj Industries Ltd revenue growth is -15.6% for FY-2025 , which is below its 5 year CAGR of 21% , indicating slower growth.
Q.2 Gross Profit margin of Praj Industries Ltd?
Praj Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.5% for FY-2025 , which is above its 5 year median of 10.3% , indicating increasing margins.
Q.3 Operating Profit Margin of Praj Industries Ltd?
Praj Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.94% for FY-2025 , which is above its 5 year median of 8.2% indicating increasing margins.
Q.4 Net Profit Margin of Praj Industries Ltd?
Praj Industries Ltd Net Profit Margin is 7.64% for FY-2025 , is above with its 5 year median of 6.76%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 12.5 10.3
Operating Profit Margin 10.94 8.2
Net Profit Margin 7.64 6.76
Q.5 Return on Asset of Praj Industries Ltd?
Praj Industries Ltd Return on Asset is 7.27(x), which is below its 5 year historical median of 7.91(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Praj Industries Ltd?
Praj Industries Ltd Return on equity is 16.49% for FY-2025 , which is below its historical median of 17.54%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Praj Industries Ltd?
Praj Industries Ltd Return on capital employed is 23.9% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Praj Industries Ltd?
Praj Industries Ltd Cash conversion cycle is 32 , below its historical median of 46 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.95 1.17
ROE 16.49 17.54
ROCE 23.9 24.15
Cash Conversion Cycle 32 46
Q.9 Debt to Equity ratio of Praj Industries Ltd?
Praj Industries Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.17 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Praj Industries Ltd?
Praj Industries Ltd Debt to cash flow from operations is 0 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Praj Industries Ltd?
Promoters hold 32.81% of the Praj Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Praj Industries Ltd vs industry peers?
Praj Industries Ltd revenue CAGR is 20.96% , compared to the industry median CAGR of 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,864 101.1
Gross Profit 358 9.6
Operating Profit 313 9
Net Profit 219 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.95 0.89
ROE 16.49 11.68
ROCE 23.9 14.29
Cash Conversion Cycle 31.88 101

Valuation & price assessment

Q.1 Stock return of Praj Industries Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 14.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.1% 11.6% 0.5% -31.5%
Q.3 Valuation ratios of Praj Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 119.42 27.08 46.24
Price to Book 4.82 1.96 2.79
Price to Sales 1.95 1.36 2.66
EV to EBITDA 24.83 16.01 15.72

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