Check Before You Invest : Praj Industries Ltd

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 average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Praj Industries Ltd undervalued or overvalued?

Praj Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above 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 20.96%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Praj Industries Ltd?

Praj Industries Ltd Return on capital employed is 23.9% for FY-2025, which is in line with its 5-year historical median of 24.15%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Praj Industries Ltd?

Praj Industries Ltd Return on Asset is 7.27%, which is below its 5-year historical median of 7.91%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Praj Industries Ltd?

Praj Industries Ltd Return on equity is 16.49% for FY-2025, which is below its 5-year historical median of 17.54%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Praj Industries Ltd?

Praj Industries Ltd Cash conversion cycle is 32 days, below its 5-year historical median of 46 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.95	1.17
ROE	16.49	17.54
ROCE	23.9	24.15
Cash Conversion Cycle	32 days	46 days

Q.6 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.7 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.8 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	5-year Historic Median
Gross Profit Margin	12.5	10.3
Operating Profit Margin	10.94	8.2
Net Profit Margin	7.64	6.76

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 0.34, 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.

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 12.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-15.6	12
Gross Profit Growth	-15.4	NAN
Operating Profit Growth	-14	NAN
Net Profit Growth	-22.6	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.95	0.91
ROE	16.49	12.81
ROCE	23.9	15.04
Cash Conversion Cycle (days)	31.88	107

Valuation & price assessment

Q.1 Stock return of Praj Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	16.5%	10.7%	5.1%	-8.8%

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 compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	146.66	42.76	29.52
Price to Book	5.92	7.32	2.90
Price to Sales	2.4	2.78	2.94
EV to EBITDA	30.74	23.78	15.76

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