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Praj Industries Ltd. Stock Analysis

Small Cap
Evaluated by 4167 users | BSE: 522205 | NSE: PRAJIND |
Engineering - Industrial Equipments
Praj Industries was set up in 1984 with a vision to deliver cutting edge technologies to distillery industries. It is leading biofuel Technology Company providing number of processes and systems for ethanol and biodiesel productions. It is a globally leading Company with over 600 references in...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Praj Industries Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 10.05%12.25%12.13%9.93%10.11%12.51%6.11%4.99%7.76%9.12%
Value Creation Index -0.52-0.38-0.39-0.50-0.49-0.37-0.69-0.75-0.61-0.35
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6919579499329951,0798129641,0761,106
Y-o-Y Gr. Rt.-38.5%-0.8%-1.8%6.7%8.4%-24.7%18.7%11.7%2.8%
Adjusted EPS (Rs.) 2.973.934.063.43.554.582.311.953.113.53
Y-o-Y Gr. Rt.-32.3%3.3%-16.3%4.4%29%-49.6%-15.6%59.5%13.5%
Book Value per Share (Rs.) 30.2530.8232.1532.8235.0636.4939.3339.9140.6539.16
Adjusted Net Profit 54.970.57260.462.981.541.435.356.864.7
Net Op. Cash Flow (Rs. Cr.) 11324.128.3-3.515051.120.21013314.7
Debt to Cash Flow from Ops 00.990.58-6.160.120.310.220.0600
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Praj Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.4%2.1%10.9%2.8%
Adjusted EPS 1.9%-0.1%15.2%13.5%
Book Value per Share 2.92.2-0.1-3.7
Share Price 2.1% 0.2% -10.3% -22.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 10.1112.6812.8210.4710.4512.766.074.927.728.84
Operating Profit Margin (%) 6.8910.019.559.378.6210.588.465.357.677.06
Net Profit Margin (%) 7.847.627.966.676.527.565.13.665.285.85
Debt to Equity 00.040.030.040.030.020.010.0100
Working Capital Days 198212262291247201284230202211
Cash Conversion Cycle 465875861027972554963
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 32.92%
Institutions 28.31%
Non-Institutions 38.77%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Praj Industries Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Praj Industries Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Praj Industries Ltd.'s performance infers:

Praj Industries Ltd. earnings have declined by -0.1%, whereas share price has appreciated 0.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Praj Industries Ltd. share prices over the last 10 years. Here is what we found out:

Praj Industries Ltd. share price has appreciated 1.6% annually over the past ten years.

Praj Industries was set up in 1984 with a vision to deliver cutting edge technologies to distillery industries. It is leading biofuel Technology Company providing number of processes and systems for ethanol and biodiesel productions. It is a globally leading Company with over 600 references in more than 60 countries across 5 continents, Praj has acquired an international reputefor responsible and reliable solutions.

Business

Alcohol Plants- For alcohol productions its has

Praj Industries was set up in 1984 with a vision to deliver cutting edge technologies to distillery industries. It is leading biofuel Technology Company providing number of processes and systems for ethanol and biodiesel productions. It is a globally leading Company with over 600 references in more than 60 countries across 5 continents, Praj has acquired an international reputefor responsible and reliable solutions.

Business

Alcohol Plants- For alcohol productions its has developed HIFERM fermentation systems that is developed to handle variety of raw materials. It also develops a plant that handles raw materials to developing wastewater treatment systems.

Fuel Ethanol Plants- It develops Ecomol Molecular Sieve Plants that provide consistent quality products, minimum consumption of energy, maximum alcohol recovery and automation and control system.

Water & Wastewater Treatment Plants - Praj offers integrated water & wastewater treatment systems and has already made a beginning in the industrial sector with a wide range of solutions. This vertical addresses industrial applications for high quality water, complex effluent treatment including recycle and reuse and zero liquid discharge plants.

Bio Diesel plants- It develops complexes that can produce biodiesel and bioethanol.

Brewery Plants- It does plant engineering for brewery industries.

Recognition

2013

  • Mr. Pramod Chaudhari received the prestigious BioSpectrum Leadership Award 2013 for his contribution to the biofuels industry through technological innovations.
  • Pramod Chaudhari honored with the Lifetime Achievement Award 2013 by the Sugar Technologists Association of India
  • In March 2013, Praj received the ABLE (Association of Biotechnology Led Enterprises) Tenth Anniversary Award under the ‘BioIndustrial’ category for its efforts and contribution towards Industrial Biotechnology
  • Pramod Chaudhari receives Maxell Lifetime Achievement Award 2013

2012

  • In Decebmer 2012, Praj Matrix bagged the 'Green Innovation Award' for Outstanding Research in the field of Green Chemistry & Engineering
  • In October 2012, Praj receives the MCCIA- B. G. Deshmukh 'Innovation in Corporate Social Responsibility Award 2012'
  • In May 2012,  Praj received the EPCES Export Award  or outstanding export performance during the year 2009-10 from the Category-II Product Specific SEZ - MSME.
  • Praj/DBS Team wins the Safety Performance Award for the Month of April 2012 at Illovo project site.
  • In March 2012,  Kandla SEZ Unit receives Highest Export award  for the year 2012-2011 under the category of Engineering and Metallurgical Products.
  • Praj was conferred with Bio-Excellence Award 2012 for the 2nd time in February 2012 for outstanding contribution to BioIndustrial Sector.

2011

  • In March 2011, Pramod Chaudhari bestowed with Pune's Pride award for his excellence in corporate world

2010

  • In September 2010, Praj was honored with EEPC 'Gold Trophy' Third time is a row for exceptional performance in exports for the year 2008-2009

Praj Industries is among 14 Indian Companies which are members of 125 GGC forum.

It has been acknowledged by  Business Standard and by Business World – Boston Consulting Group as best value creator.

Milestones

2013

  • Mr. Pramod Chaudhari received the prestigious BioSpectrum Leadership Award 2013 for his contribution to the biofuels industry through technological innovations.
  • Pramod Chaudhari honored with the Lifetime Achievement Award 2013 by the Sugar Technologists Association of India
  • In March 2013, Praj received the ABLE (Association of Biotechnology Led Enterprises) Tenth Anniversary Award under the ‘BioIndustrial’ category for its efforts and contribution towards Industrial Biotechnology
  • Pramod Chaudhari receives Maxell Lifetime Achievement Award 2013


2012

  • In Decebmer 2012, Praj Matrix bagged the 'Green Innovation Award' for Outstanding Research in the field of Green Chemistry & Engineering
  • In October 2012, Praj receives the MCCIA- B. G. Deshmukh 'Innovation in Corporate Social Responsibility Award 2012'
  • In May 2012,  Praj received the EPCES Export Award  or outstanding
  • export performance during the year 2009-10 from the Category-II Product Specific SEZ - MSME.
  • Praj/DBS Team wins the Safety Performance Award for the Month of April 2012 at Illovo project site.
  • In March 2012,  Kandla SEZ Unit receives Highest Export award  for the year 2012-2011 under the category of Engineering and Metallurgical Products.
  • Praj was conferred with Bio-Excellence Award 2012 for the 2nd time in February 2012 for outstanding contribution to BioIndustrial Sector.

2011 

  • Praj manufacturing gets ISO 14001 certification 
  • Praj gets OHSAS 18001 certification 

2010 

  • Praj ventures into Water & Water Treatment Solutions 
  • Commissioned bio-ethanol plant for Biowanze, Belgium 
  • Praj installs ‘Grain to Ethanol’ Pilot Plant at Praj Matrix-The R&D Center 

2009 

  • Praj inaugurated the Cellulosic Ethanol Pilot Plant at Praj Matrix at Urawade. The pilot plant is capable of producing ethanol from corn cob and sugarcane baggase under varying operating conditions. It is a break-through in cellulosic biomass to ethanol technology at pilot scale 
  • Praj entered into Customized Engineering & Manufacturing Sector 
  • Praj receives ISO 9001-2008 status 
  • Praj entered into Energy Crop Agri-Solution Business 

2008 

  • Praj sets up JV in Brazil with Jaragua Equipamentos called Praj Jaragua Bioenergia SA. 
  • Praj technology selected for the largest European Plant for Vivergo Biofuels 
  • Praj inaugurated the state-of-the-art R&D facility, Praj Matrix the innovation center focusing on second/third generation biofuels. 

2007 

  • Praj and Aker Solutions JV company established (BioCnergy Europa B.B.) in The Netherlands. 
  • Praj received orders to install Cassava based plants in Thailand. 
  • Aker Solutions and Praj win contract for world-scale bioethanol project in the UK. 
  • 5th Manufacturing facility in Kandla (SEZ), India commissioned for bioethanol and biodiesel manufacturing units. 
  • Praj received orders to install Cassava based plants in Thailand. 
  • UKs first plant based on Praj process plant inaugurated. 

2006 

  • All five large sized ethanol plants in Colombia on stream for commercial production from March 2006 onwards. 
  • Breakthrough in European Market - received contract from British Sugars. 
  • Breakthrough in US market. Receives two major contracts to install large size ethanol plants. 
  • Praj was Platinum Sponsor at FO Licht World Ethanol Event, Amsterdam. 
  • Praj expands R&D Center. 
  • Venture Capitalist Vinod Khosla and Marubeni Corporation invests in Praj. 
  • Praj inks alliance with Meura for High Performance Brewery Mash Filters Praj expands Brewery Business. 
  • Praj Bio-ethanol Technology for Belgium. 
  • Skid Mounted Ethanol Plant designed, manufactured and shipped to CSR Australia. 
  • Breakthrough in the USA market. 
  • Praj Industries and Aker Solutions forge a bio-ethanol alliance in Europe. 

2005 

  • Praj commissioned two large size ethanol plants in Colombia. 
  • DSIR honors Praj for exports in in-house R&D based technology. 
  • Exclusive Export Oriented Unit (EOU) established. 
  • Brewery Manufacturing facility near Pune (Sanaswadi, Unit-2) acquired. 
  • Praj acquires worldwide rights for Molecular Sieve based dehydration technology from Delta-T. 
  • ICRA certified Praj as A1+ category company for short term finance. 
  • ESOP (Employees Stock Option Plan) declared. 
  • Praj was the prime (Platinum) sponsor for World Ethanol Event (2005). 
  • Praj sponsors major ethanol events worldwide. 

2002/04 

  • Praj Enters in to Australian Market with First technology and engineering order for green-field Fuel ethanol production plant. 
  • Launch of PRAJ-Matrix - The Innovation Center for advanced applied research in the field of ethanol and brewing process. 
  • Praj opens three new offices overseas - Johannesburg, Bangkok and Sharjah. 
  • Praj commissions South East Asia's first Secondary Juice to Ethanol Plant at Vaidyanath SSK, Pangri, Maharashtra. 
  • Praj is Gold Sponsor to World Ethanol Conference an Annual worldwide yearly conference in London.(2003). 
  • Praj participates in the National Planning Commissions Policy on Biofuels. 
  • Praj develops Sweet Sorghum to Ethanol process. 
  • Praj helps with 1200-1400 acres of pilot cultivation of Sweet Sorghum in India. Trials completed in Australia also. 
  • Praj attains leadership in fuel ethanol plants in India with over 70% market share. 
  • Praj crosses the 1 billion turnover mark. 
  • Received 6 major orders for fuel ethanol in South/Central America. Establishes lead over Brazilian & European Technology Companies in South America. 
  • Praj received ICORE award for the leadership in Biofuels. 
  • Praj's Chairman received Distinguished Alumnus Award from IIT, Mumbai. 
  • Praj commissions a unique wastewater treatment plant in Colombia. This technology was developed in-house. 
  • Praj announces 2004-05 as The Year of Innovation. 
  • Praj is Prime (Platinum) Sponsor to World Ethanol Conference an Annual worldwide yearly conference in London.(2004) 

2000/02 

  • Praj ties up with Delta T Corp, USA for Vapor Phase Molecular Sieve Dehydration plants, for production of Fuel grade ethanol. 
  • The first MSDH plant in India went on stream in May 02. 
  • Praj enters into East European Market with engineering order for a grain-based plant. 
  • Praj launches Multi-feed & Multi-product Ethanol technology for round the year distillery operation. Application engineering completed for Cane juice and Sugar Beet to ethanol process technology. 
  • Praj bags an order for Multi-feed & multi-product plant in Maharashtra, for Vaidyanath SSK. 

1999/00 

  • Praj ventured into South America in 2000. An office was set up in Bogota, Colombia to reach out to South, Central America and Caribbean and partner customers in the region. 
  • In the Year 2000, Praj manufacturing facility was awarded the ISO 9000:2008 and the prestigious ASME U & H stamps for pressure vessels and heating boilers. 
  • Fuel Ethanol, the new driving force in the ethanol industry, has been gaining in its share of motor fuel not only in the Americas where over 60% of fuel ethanol is produced, but also in Australia, Thailand and in India. 
  • Energy saving multi-pressure distillation systems, introduced by Praj, become an Industry Standard. 
  • Praj bags technology & engineering orders in South America and the Caribbeans. 

1996/99 

  • Praj restructures with an aim to streamline the Company's operations and achieve greater focus in its strong technologies. 
  • Praj increased its focus on its primary lines like ethanol technology and equipment, brewery engineering, fruit processing industry. 
  • Praj commissions several grain based ethanol plants in India. 

1993/95 

  • Going Public and Listing on the Stock Exchanges in India, which was oversubscribed 7 times.
  • Praj also decided to spread its presence in the international market. 
  • The first international order from Indonesia for multi-pressure distillation was contracted. It also incorporated the patented self-cleaning Flubex evaporator for concentration of distillery spent-wash. 
  • Order from the Philippines amidst global competition was contracted for multi route plants. Praj continues to score in the South East Asian Markets. 

1991/93 

  • On the technical front, Praj undertook in-house development of Non-molasses (Starch based) technology and engineering for grains and tubers in 1993. Whilst in India most alcohol is produced from cane molasses route, Praj realized the importance of grains and tubers in the production of alcohol, a prevalent practice in the west. 
  • Molasses was decontrolled and the entire industry went through a change phase. Grain based distilleries were being looked upon favorably. A dual route system was developed for cane molasses and grains. 
  • At the same time, Praj also drew up a plan to diversify into synergistic fields like Brewery Engineering and plate heat exchangers which would make Praj a full Service Company for technology, process equipment and systems for industries it directly served. 

1989/91 

  • To further its commitment to the Ethanol industry Praj set up an R & D Center dedicated to ethanol production. Recognized by Govt. of India, DSIR, this center is equipped with analytical and instrumental laboratory and fermentation, distillation and effluent treatment pilot plants. 

1987/88 

  • Praj, one of the first Companies to receive Venture Capital from ICICI (now ICICI Ventures).1986 
  • Praj collaborates with Vogelbusch, Austria for Continuous Fermentation Process in India. 
  • Praj develops SPRANNIHILATOR, a zero-pollution system for treatment of distillery effluents. 
  • The system was subsequently given an award for innovative concept. 

1984/85 

  • Inception of PRAJ. Beginning of PRAJ's journey into Agro-based process industry. 
  • Ist Opportunity comes from Siddheswar Sahakari Sakhar Karkhana Ltd. (Solapur).  
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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