Hold Praj Industries; target of Rs 353 Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Praj Industries with a target price of Rs 353 in its research report dated November 06, 2025.

Broker Research

November 11, 2025 / 12:59 IST

hold

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Praj Industries

We revise our FY27/28E EPS estimates by -10.3%/-3.2% accounting for lower domestic demand and delayed order booking and execution from GenX facility. The company reported a weak quarter, with revenue rising marginally by 3.1% YoY and EBITDA margin contracting sharply by 490bps YoY to 6.6%, impacted by GenX-related higher other expenses. Several ETCA projects earlier identified by Praj’s customers have been stalled, resulting in the GenX facility now serving a more diversified customer base. Persistent execution challenges and subdued demand for new ethanol plants post-achievement of EBP 20 continue to weigh on the domestic BioEnergy segment. Nonetheless, Praj’s diversification into CBG, Bio Bitumen, biopolymers, and SAF is gradually gaining traction, offering some visibility for medium-term growth. On the international front, prospects remain encouraging, aided by supportive policy measures across Latin America, Africa, and Asia, while the first-ever lowcarbon ethanol demo plant order from the USA improves positioning despite ongoing tariff headwinds.

Outlook

The stock is trading at a P/E of 27.5x/22.3x on FY27/28E earnings. We roll forward to Sep’27E and maintain our ‘Hold’ rating valuing the stock at a PE of 26x Sep’27E (29x Mar’27E earlier) arriving at a revised TP of Rs353 (Rs393 earlier).

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