Prabhudas Lilladher's research report on Praj Industries
PRAJ is well poised for growth in the coming years given 1) its strong leadership in domestic ethanol plants (~60-65% market share), 2) prominent global presence in more than 100 countries and 3) significant focus on future-ready technologies like 2G ethanol (orders for three 2G based ethanol plants), Compressed Bio Gas (CBG) (opportunity of 5,000 CBG plants) & Sustainable Aviation Fuel (SAF) and 6) diversification in Wastewater Treatment (ZLD), Critical Process Equipment’s & System (CPES) & HiPurity business. We anticipate PRAJ’s Revenue/PAT CAGR at 17.4%/29.3% over FY2022-25E led by robust order book, healthy tender pipeline, strong market leadership, pickup in execution, better operational efficiencies and well managed working capital cycle. The stock is currently trading at a P/E of 31.5x/23.1x on FY23/24E earnings. Initiate ‘BUY’.
Outlook
We initiate coverage on Praj Industries (PRAJ) with ‘BUY’ rating at target price of Rs.507 valuing it at PE of 30x FY24E.
More Info
At 17:30 Praj Industries was quoting at Rs 390.40, up Rs 14.90, or 3.97 percent.
It has touched an intraday high of Rs 392.30 and an intraday low of Rs 375.00.
It was trading with volumes of 73,434 shares, compared to its thirty day average of 55,626 shares, an increase of 32.01 percent.
In the previous trading session, the share closed down 0.37 percent or Rs 1.40 at Rs 375.50.
The share touched its 52-week high Rs 448.25 and 52-week low Rs 289.05 on 20 January, 2022 and 26 May, 2022, respectively.
Currently, it is trading 12.91 percent below its 52-week high and 35.06 percent above its 52-week low.
Market capitalisation stands at Rs 7,170.60 crore.
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