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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 522205 | NSE: PRAJIND

Praj Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:37 pm

Market Cap 12,430 Cr.
Current Price 676
High / Low827/448
Stock P/E44.7
Book Value 70.7
Dividend Yield0.89 %
ROCE29.3 %
ROE23.3 %
Face Value 2.00
PEG Ratio1.46

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Praj Industries Ltd

Competitors of Praj Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HLE Glascoat Ltd 2,436 Cr. 357582/35081.6 63.20.31 %13.1 %8.62 % 2.00
Harish Textile Engineers Ltd 30.4 Cr. 91.0102/42.7 27.80.00 %10.8 %2.98 % 10.0
Disa India Ltd 2,552 Cr. 17,54620,900/12,70254.8 1,7801.14 %25.9 %19.2 % 10.0
Cranex Ltd 79.3 Cr. 132190/47.042.2 19.50.00 %10.1 %14.9 % 10.0
Concord Control Systems Ltd 1,015 Cr. 1,6972,062/53867.3 91.10.00 %72.8 %60.3 % 10.0
Industry Average13,168.67 Cr1,910.7359.00259.430.27%20.32%16.23%5.59

All Competitor Stocks of Praj Industries Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales3865325868317328819111,0047378828291,019699
Expenses356486535753676813825896661798731888607
Operating Profit3146517856688610875849813192
OPM %8%9%9%9%8%8%9%11%10%10%12%13%13%
Other Income575756816121191140
Interest1111111211445
Depreciation5557677999111520
Profit before tax30475078546686113788592123107
Tax %26%29%26%26%24%27%27%22%24%26%23%25%21%
Net Profit22333758414862885962709284
EPS in Rs1.211.812.023.142.252.623.394.803.193.393.835.004.58

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales9199861,0121,0249159171,1411,1021,3052,3433,5283,4663,429
Expenses8349079199108468651,0621,0241,1922,1493,2203,0943,024
Operating Profit85799311469527978112194308372404
OPM %9%8%9%11%8%6%7%7%9%8%9%11%12%
Other Income31233418222732302636455972
Interest212211133351014
Depreciation22243825222423222223304455
Profit before tax92778610568538883113205319377407
Tax %23%27%9%22%34%26%22%15%28%27%25%25%
Net Profit725778824539687081150240283309
EPS in Rs3.833.084.304.632.492.183.733.854.428.1813.0515.4216.80
Dividend Payout %42%72%38%35%65%74%57%70%49%51%34%39%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-20.83%36.84%5.13%-45.12%-13.33%74.36%2.94%15.71%85.19%60.00%17.92%
Change in YoY Net Profit Growth (%)0.00%57.68%-31.71%-50.25%31.79%87.69%-71.42%12.77%69.47%-25.19%-42.08%

Praj Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:25%
3 Years:39%
TTM:-5%
Compounded Profit Growth
10 Years:19%
5 Years:36%
3 Years:50%
TTM:3%
Stock Price CAGR
10 Years:26%
5 Years:44%
3 Years:26%
1 Year:10%
Return on Equity
10 Years:14%
5 Years:18%
3 Years:22%
Last Year:23%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:51 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital35353536363637373737373737
Reserves5355475876206746907086837658791,0411,2381,263
Borrowings162117164600182142169168
Other Liabilities6596705044854734015024427741,2811,4991,4501,399
Total Liabilities1,2461,2741,1441,1571,1871,1331,2471,1621,5942,2182,6192,8942,866
Fixed Assets247323302272270297290294284286317474540
CWIP4821131422127437
Investments16391158145134201211164335463543497590
Other Assets7888596827387526317447029751,4671,7521,8801,730
Total Assets1,2461,2741,1441,1571,1871,1331,2471,1621,5942,2182,6192,8942,866

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +28-315051201013315225188162199
Cash from Investing Activity +2619-772-8-69-366-164-137-78-6
Cash from Financing Activity +-58-40-40-68-4-25-43-98-6-44-93-124
Net Cash Flow-4-2433-1598-14-18556-970

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow69.0058.0076.0098.0065.0046.0079.0078.0094.00173.00266.00203.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days12511910113111810598109127808288
Inventory Days116170164798263767364865541
Days Payable1931531281621671371401241691068492
Cash Conversion Cycle49136137483330335921605437
Working Capital Days30553252685339651451019
ROCE %14%11%12%16%10%6%11%11%15%23%31%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters32.83%32.83%32.83%32.83%32.82%32.87%32.82%32.82%32.82%32.81%32.81%32.81%
FIIs15.00%14.98%13.84%15.93%16.98%17.61%17.83%18.30%17.93%17.37%18.87%18.55%
DIIs6.85%8.41%8.83%10.01%10.33%7.69%7.83%8.40%10.20%13.09%13.69%16.65%
Public45.32%43.78%44.50%41.23%39.85%41.84%41.50%40.48%39.04%36.74%34.64%31.99%
No. of Shareholders2,03,2492,07,5862,79,0572,76,0962,61,2942,79,3312,83,4592,77,2242,96,9313,14,4753,24,8493,27,689

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Canara Robeco Emerging Equities7,345,8812.11518.11632,8252024-11-201060.81%
Nippon India Small Cap Fund5,381,6270.63379.57632,8252024-11-20750.41%
Franklin India Smaller Companies Fund1,754,3730.85123.74632,8252024-11-20177.23%
Nippon India Power & Infra Fund1,500,0001.4105.8632,8252024-11-20137.03%
UTI Mid Cap Fund1,250,5700.7188.2632,8252024-11-2097.62%
Motilal Oswal Small Cap Fund819,9602.757.83632,8252024-11-2029.57%
Franklin Build India Fund762,0571.8753.75632,8252024-11-2020.42%
Franklin India Prima Fund750,0000.4252.9632,8252024-11-2018.52%
Bandhan Core Equity Fund632,8250.7544.63632,8252024-11-200%
Bandhan Focused Equity Fund630,3912.6944.46632,8252024-11-20-0.38%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)15.4213.058.184.433.85
Diluted EPS (Rs.)15.4213.058.184.433.85
Cash EPS (Rs.)17.8114.709.415.635.04
Book Value[Excl.RevalReserv]/Share (Rs.)69.3458.6849.8943.8039.31
Book Value[Incl.RevalReserv]/Share (Rs.)69.3458.6849.8943.8039.31
Revenue From Operations / Share (Rs.)188.57192.04127.0471.2060.19
PBDIT / Share (Rs.)23.4619.2512.527.545.90
PBIT / Share (Rs.)21.0717.6011.296.334.71
PBT / Share (Rs.)20.5317.3511.156.174.54
Net Profit / Share (Rs.)15.4213.058.184.423.85
NP After MI And SOA / Share (Rs.)15.4213.058.184.423.85
PBDIT Margin (%)12.4410.029.8510.589.80
PBIT Margin (%)11.179.168.888.887.82
PBT Margin (%)10.889.038.788.667.54
Net Profit Margin (%)8.176.796.436.216.38
NP After MI And SOA Margin (%)8.176.796.436.216.38
Return on Networth / Equity (%)22.2322.2416.4010.109.79
Return on Capital Employeed (%)26.9628.9121.8713.9711.46
Return On Assets (%)9.789.156.785.086.06
Total Debt / Equity (X)0.000.000.000.420.26
Asset Turnover Ratio (%)1.261.361.120.820.81
Current Ratio (X)1.521.451.461.621.91
Quick Ratio (X)1.371.231.181.451.63
Inventory Turnover Ratio (X)6.906.516.266.234.81
Dividend Payout Ratio (NP) (%)29.2132.1226.390.00135.33
Dividend Payout Ratio (CP) (%)25.2828.5222.940.00103.29
Earning Retention Ratio (%)70.7967.8873.610.00-35.33
Cash Earning Retention Ratio (%)74.7271.4877.060.00-3.29
Interest Coverage Ratio (X)44.0676.3991.8148.3334.91
Interest Coverage Ratio (Post Tax) (X)29.9552.8160.9829.3723.75
Enterprise Value (Cr.)9579.226119.017160.463776.421147.15
EV / Net Operating Revenue (X)2.761.733.072.891.04
EV / EBITDA (X)22.2117.3031.1427.3510.61
MarketCap / Net Operating Revenue (X)2.821.783.132.730.91
Retention Ratios (%)70.7867.8773.600.00-35.33
Price / BV (X)7.685.817.994.451.40
Price / Net Operating Revenue (X)2.821.783.132.730.91
EarningsYield0.020.030.020.020.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Praj Industries Ltd as of November 21, 2024 is: 742.90

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Praj Industries Ltd is Undervalued by 9.90% compared to the current share price 676.00

Intrinsic Value of Praj Industries Ltd as of November 21, 2024 is: 970.30

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Praj Industries Ltd is Undervalued by 43.54% compared to the current share price 676.00

Last 5 Year EPS CAGR: 30.61%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.75%, which is a positive sign.
  2. The company has higher reserves (786.92 cr) compared to borrowings (38.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (288.69 cr) and profit (159.46 cr) over the years.
  1. The stock has a high average Working Capital Days of 36.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 58.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Praj Industries Ltd:
    1. Net Profit Margin: 8.17%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 26.96% (Industry Average ROCE: 20.32%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 22.23% (Industry Average ROE: 16.23%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 29.95
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.37
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 44.7 (Industry average Stock P/E: 59)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Praj Industries Ltd. is a Public Limited Listed company incorporated on 08/11/1985 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27101PN1985PLC038031 and registration number is 038031. Currently Company is involved in the business activities of Manufacture of other special-purpose machinery. Company’s Total Operating Revenue is Rs. 2053.24 Cr. and Equity Capital is Rs. 36.74 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - HeavyPraj Tower, S.No. 274 & 275/2, Pune Maharashtra 411057info@praj.net
http://www.praj.net
Management
NamePosition Held
Dr. Pramod ChaudhariExecutive Chairman
Mr. Shishir JoshipuraManaging Director & CEO
Mr. Sachin RaoleDirector & CFO
Ms. Parimal ChaudhariNon Executive Director
Dr. Shridhar ShuklaIndependent Director
Mr. Suhas BaxiIndependent Director
Mr. Utkarsh PalnitkarIndependent Director
Mr. Vinayak DeshpandeIndependent Director
Mr. Rujuta JagtapIndependent Director

FAQ

What is the latest intrinsic value of Praj Industries Ltd?

The latest intrinsic value of Praj Industries Ltd as on 21 November 2024 is ₹742.90, which is 9.90% higher than the current market price of ₹676.00.

What is the Market Cap of Praj Industries Ltd?

The Market Cap of Praj Industries Ltd is 12,430 Cr..

What is the current Stock Price of Praj Industries Ltd as on 21 November 2024?

The current stock price of Praj Industries Ltd as on 21 November 2024 is ₹676.

What is the High / Low of Praj Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Praj Industries Ltd stocks is 827/448.

What is the Stock P/E of Praj Industries Ltd?

The Stock P/E of Praj Industries Ltd is 44.7.

What is the Book Value of Praj Industries Ltd?

The Book Value of Praj Industries Ltd is 70.7.

What is the Dividend Yield of Praj Industries Ltd?

The Dividend Yield of Praj Industries Ltd is 0.89 %.

What is the ROCE of Praj Industries Ltd?

The ROCE of Praj Industries Ltd is 29.3 %.

What is the ROE of Praj Industries Ltd?

The ROE of Praj Industries Ltd is 23.3 %.

What is the Face Value of Praj Industries Ltd?

The Face Value of Praj Industries Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Praj Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE