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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Praj Industries Ltd

About the Company - Praj Industries Ltd

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
Mr. Berjis DesaiNon Executive Director
Mr. Sivaramakrishnan S IyerNon Executive Director
Ms. Parimal ChaudhariNon Executive Director
Dr. Shridhar ShuklaNon Executive Director
Mr. Suhas BaxiNon Executive Director
Ms. Mrunalini JoshiNon Executive Director

Praj Industries Ltd. Share Price Update

Share PriceValue
Today₹479.00
Previous Day₹483.75

Basic Stock Data of Praj Industries Ltd

Market Cap 9,255 Cr.
Current Price 504
High / Low650/299
Stock P/E33.1
Book Value 60.5
Dividend Yield0.88 %
ROCE31.0 %
ROE23.7 %
Face Value 2.00

Data Source: screener.in

Competitors of Praj Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Texmaco Rail & Engineering Ltd 6,988 Cr. 182232/40.583.9 35.90.08 %6.63 %1.47 % 1.00
Titagarh Rail Systems Ltd 13,389 Cr. 9941,249/20452.4 1030.05 %17.6 %13.9 % 2.00
Techno Electric & Engineering Company Ltd 8,213 Cr. 763860/31241.4 1850.77 %8.18 %9.91 % 2.00
Triveni Turbine Ltd 14,336 Cr. 451498/29057.8 27.90.29 %28.7 %21.5 % 1.00
Bright Solar Ltd 27.2 Cr. 10.912.4/4.65 12.90.00 %0.33 %0.16 % 10.0
Industry Average13.64 Cr480.1847.172.940.24%12.29%9.39%3.2

Praj Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales2603485673865325868317328819111,004737882
Expenses243308492356486535753676813825896661798
Operating Profit184075314651785668861087584
OPM %7%11%13%8%9%9%9%8%8%9%11%10%10%
Other Income4545757568161211
Interest1111111111211
Depreciation6655557677999
Profit before tax163973304750785466861137885
Tax %27%27%29%26%29%26%26%24%27%27%22%24%26%
Net Profit11285222333758414862885962
EPS in Rs0.621.542.841.211.812.023.142.252.623.394.803.193.39

Praj Industries Ltd Quarterly Chart

Praj Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,0039199861,0121,0249159171,1411,1021,3052,3433,5283,535
Expenses9118349079199108468651,0621,0241,1922,1493,2203,181
Operating Profit9385799311469527978112194308354
OPM %9%9%8%9%11%8%6%7%7%9%8%9%10%
Other Income44312334182227323026364547
Interest1212211133355
Depreciation16222438252224232222233035
Profit before tax11992778610568538883113205319361
Tax %41%23%27%9%22%34%26%22%15%28%27%25%
Net Profit70725778824539687081150240271
EPS in Rs3.733.833.084.304.632.492.183.733.854.428.1813.0514.77
Dividend Payout %43%42%72%38%35%65%74%57%70%49%51%34%

Praj Industries Ltd Profit & Loss Yearly Chart

Praj Industries Ltd Growth

Compounded Sales Growth
10 Years:14%
5 Years:31%
3 Years:47%
TTM:3%
Compounded Profit Growth
10 Years:14%
5 Years:47%
3 Years:53%
TTM:34%
Stock Price CAGR
10 Years:28%
5 Years:29%
3 Years:52%
1 Year:41%
Return on Equity
10 Years:12%
5 Years:14%
3 Years:18%
Last Year:24%

Praj Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital36353535363636373737373737
Reserves5175355475876206746907086837658791,0411,076
Borrowings2416211716460-018214238
Other Liabilities6706596705044854734015024427741,2811,4991,432
Total Liabilities1,2471,2461,2741,1441,1571,1871,1331,2471,1621,5942,2182,6192,582
Fixed Assets241247323302272270297290294284286317309
CWIP10482113142212725
Investments15516391158145134201211164335463543447
Other Assets8417888596827387526317447029751,4671,7521,801
Total Assets1,2471,2461,2741,1441,1571,1871,1331,2471,1621,5942,2182,6192,582

Praj Industries Ltd Reserves and Borrowings Chart

Praj Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2628-315051201013315225188162
Cash from Investing Activity 362619-772-8-69-366-164-137-78
Cash from Financing Activity -69-58-40-40-68-4-25-43-98-6-44-93
Net Cash Flow-7-4-2433-1598-14-18556-9

Praj Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days120125119101131118105981091278082
Inventory Days1051161701647982637673648655
Days Payable13319315312816216713714012416910684
Cash Conversion Cycle92491361374833303359216054
Working Capital Days14305532526853396514510
ROCE %17%14%11%12%16%10%6%11%11%15%23%31%

Praj Industries Ltd Financial Efficiency Indicators Chart

Praj Industries Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters32.91%32.85%32.83%32.83%32.83%32.83%32.82%32.87%32.82%32.82%32.82%32.81%
FIIs11.62%13.12%15.00%14.98%13.84%15.93%16.98%17.61%17.83%18.30%17.93%17.37%
DIIs15.21%7.13%6.85%8.41%8.83%10.01%10.33%7.69%7.83%8.40%10.20%13.09%
Public40.26%46.90%45.32%43.78%44.50%41.23%39.85%41.84%41.50%40.48%39.04%36.74%
No. of Shareholders99,6902,00,6122,03,2492,07,5862,79,0572,76,0962,61,2942,79,3312,83,4592,77,2242,96,9313,14,475

Praj Industries Ltd Shareholding Pattern Chart

No. of Praj Industries Ltd Shareholders

Praj Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Small Cap Fund53816270.85346.9
Canara Robeco Emerging Equities29222101188.37
Franklin India Smaller Companies Fund17543731.05113.09
Bandhan Flexi Cap Fund12537891.2780.82
UTI Mid Cap Fund10668840.7368.77
Aditya Birla Sun Life Pure Value Fund9196711.1559.28
UTI Small Cap Fund8279421.5553.37
Nippon India Power & Infra Fund8000001.751.57
Franklin India Prima Fund7500000.5248.35
Edelweiss Small Cap Fund6594961.5242.51

Praj Industries Ltd ROCE Trend

Praj Industries Ltd EPS Trend

Praj Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)13.058.184.433.853.75
Diluted EPS (Rs.)13.058.184.433.853.74
Cash EPS (Rs.)14.709.415.635.044.99
Book Value[Excl.RevalReserv]/Share (Rs.)58.6849.8943.8039.3140.83
Book Value[Incl.RevalReserv]/Share (Rs.)58.6849.8943.8039.3140.83
Revenue From Operations / Share (Rs.)192.04127.0471.2060.1962.48
PBDIT / Share (Rs.)19.2512.527.545.906.11
PBIT / Share (Rs.)17.6011.296.334.714.86
PBT / Share (Rs.)17.3511.156.174.544.81
Net Profit / Share (Rs.)13.058.184.423.853.73
NP After MI And SOA / Share (Rs.)13.058.184.423.853.73
PBDIT Margin (%)10.029.8510.589.809.78
PBIT Margin (%)9.168.888.887.827.77
PBT Margin (%)9.038.788.667.547.70
Net Profit Margin (%)6.796.436.216.385.97
NP After MI And SOA Margin (%)6.796.436.216.385.97
Return on Networth / Equity (%)22.2416.4010.109.799.15
Return on Capital Employeed (%)28.9121.8713.9711.4611.64
Return On Assets (%)9.156.785.086.065.46
Total Debt / Equity (X)0.000.000.420.260.00
Asset Turnover Ratio (%)1.361.120.820.810.80
Current Ratio (X)1.451.461.621.911.77
Quick Ratio (X)1.231.181.451.631.51
Inventory Turnover Ratio (X)6.516.266.234.815.47
Dividend Payout Ratio (NP) (%)32.1226.390.00135.3368.10
Dividend Payout Ratio (CP) (%)28.5222.940.00103.2950.95
Earning Retention Ratio (%)67.8873.610.00-35.3331.90
Cash Earning Retention Ratio (%)71.4877.060.00-3.2949.05
Interest Coverage Ratio (X)76.3991.8148.3334.91146.31
Interest Coverage Ratio (Post Tax) (X)52.8160.9829.3723.7590.39
Enterprise Value (Cr.)6119.017160.463776.421147.152747.43
EV / Net Operating Revenue (X)1.733.072.891.042.41
EV / EBITDA (X)17.3031.1427.3510.6124.61
MarketCap / Net Operating Revenue (X)1.783.132.730.912.48
Retention Ratios (%)67.8773.600.00-35.3331.89
Price / BV (X)5.817.994.451.403.80
Price / Net Operating Revenue (X)1.783.132.730.912.48
EarningsYield0.030.020.020.060.02

Praj Industries Ltd Profitability Ratios (%)

Praj Industries Ltd Liquidity Ratios

Praj Industries Ltd Liquidity Ratios (%)

Praj Industries Ltd Interest Coverage Ratios (%)

Praj Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Praj Industries Ltd

Fair Value: ₹478.78

The stock is overvalued by 5.00% compared to the current price ₹504

*Investments are subject to market risks

Strength and Weakness of Praj Industries Ltd

StrengthWeakness
  1. The company has higher reserves (717.08 cr) compared to borrowings (17.15 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (288.54 cr) and profit (136.08 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 8.96 and average Dividend Yield of 8.50%.
  2. The stock has a low average ROCE of 14.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 36.42, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 62.67, which may not be favorable.

Should I Buy Praj Industries Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Praj Industries Ltd:
    1. Net Profit Margin: 6.79% (Higher values are generally favorable)
      • 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: 28.91% (Industry Average ROCE: 13.33%)
      • 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. Interest Coverage Ratio (Post Tax): 52.81 (Higher values, preferably > 2, are recommended)
      • 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.
    4. Quick Ratio: 1.23 (Higher values, preferably > 1, are recommended)
      • 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.
    5. ✓ Stock P/E: 33.1 (Industry average Stock P/E: 51.9)
      • 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.
    6. ✓ Total Debt / Equity: 0.00 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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