Praj Industries Ltd logo

Praj Industries Ltd

PRAJIND NSE

Praj Industries Ltd., founded in 1983 is a leading biotechnology and engineering company globally. It offers sustainable solutions in bioenergy, water purification, process equipment, breweries, and wastewater treatment. Company is focused on the environment , energy and farm-to-fuel technology solution. Company has global offices in Thailand, Philippines, and the USA.[1]

AI Verdict: HOLD Confidence: 4%

Praj Industries trades at an extremely stretched PE of 264.9x with TTM profit declining 90% YoY, making the current valuation hard to justify. However, the company's long-term sales CAGR of 12% over 10 years and strong dividend payout of 122% suggest underlying business quality. Wait for earnings recovery before committing fresh capital.

Key Fundamentals

MicrocapIndustrial ProductsCapital Goods
Market Cap
₹6,368 Cr
Volatility
Moderate
P/E Ratio
268.19
EBITDA
₹125 Cr
Return on Equity
22.23%
Debt to Equity
0.14
Book Value
₹71.22
EPS
₹15.6
52W High
₹513.8
52W Low
₹273

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 122%

Weaknesses

3
  • Promoter holding is low: 32.8%
  • Company has a low return on equity of 12.5% over last 3 years.
  • Working capital days have increased from 37.0 days to 62.8 days

Growth Rate

Revenue Growth
-3.68% ↘
Net Income Growth
-103.86% ↘
Cash Flow Change
-78.45% ↘
ROE
-28.74% ↗
ROCE
-24.33% ↗
EBITDA Margin (Avg.)
-65.85% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 20d ago
HOLD
Risk high

Praj Industries trades at an extremely stretched PE of 264.9x with TTM profit declining 90% YoY, making the current valuation hard to justify. However, the company's long-term sales CAGR of 12% over 10 years and strong dividend payout of 122% suggest underlying business quality. Wait for earnings recovery before committing fresh capital.

Bull Case 7
  • Compounded sales growth of 19% over 5 years demonstrates strong medium-term revenue traction in the bio-energy and engineering space
  • 10-year stock CAGR of 15% indicates long-term wealth creation track record despite recent underperformance
  • Dividend payout ratio of 122% signals management confidence in cash flow generation and shareholder-friendly capital allocation
  • Dividend yield of 1.74% provides reasonable income cushion in a high-valuation industrial stock
  • 10-year compounded sales growth of 12% confirms the company has scaled revenues consistently across business cycles
  • 5-year ROE average of 15% reflects historically efficient capital deployment before the recent earnings dip
  • Market cap of Rs 6,388 Cr positions Praj as a mid-cap with potential re-rating if bio-fuel policy tailwinds materialize
Bear Case 8
  • PE ratio of 264.9x is excessively expensive, pricing in recovery that is far from guaranteed in the near term
  • TTM compounded profit growth of -90% signals a severe earnings collapse that may not be transitory
  • 3-year compounded profit CAGR of -57% shows earnings deterioration is not a one-quarter blip but a sustained trend
  • Last year ROE of just 1% versus 3-year average of 12% indicates a dramatic fall in return generation efficiency
  • Stock has declined 30% over 1 year, reflecting market's loss of confidence in near-term fundamentals
  • Working capital days increased from 37.0 to 62.8 days, a 70% deterioration indicating worsening cash conversion cycle
  • Promoter holding at 32.8% is relatively low, raising governance and alignment concerns for a mid-cap industrial company
  • Only 25% of analysts recommend a Buy (2 out of 8 ratings), with 25% recommending Sell, reflecting divided Street opinion

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 20d ago
Headwinds 1
  • FY26 net profit crashes 89% May 28

    Consolidated net profit fell 89.1% YoY to INR 238 Mn for FY26. EBITDA margins contracted sharply to 4.79% while operating income declined 1.9% to INR 31,679 Mn.

Positives 1
  • Sachin Raole appointed JMD & CFO May 15

    Praj Industries appointed Sachin Raole as Joint Managing Director and CFO for a five-year term from April 30, 2026, with remuneration capped at ₹3.44 Cr for FY2026-27.

Neutral 3
  • Q4FY26 analyst call scheduled May 25

    Analyst call set for May 29, 2026, led by MD Ashish Gaikwad and JMD & CFO Sachin Raole to discuss audited Q4 and full-year FY26 results.

  • Board met for results & dividend May 20

    Board met on May 28 to consider FY26 audited results and final dividend. Trading window closed till May 30.

  • KMPs authorized for materiality May 28

    Four Key Managerial Personnel were authorized to determine materiality of events under SEBI regulations effective May 28, 2026.

TL;DR: Praj Industries faces a severe profitability headwind with FY26 net profit collapsing 89% and EBITDA margins compressing to sub-5% levels despite only a modest revenue decline. Leadership continuity is being strengthened with a new JMD & CFO appointment. The margin deterioration signals execution or cost challenges that investors will scrutinize on the May 29 analyst call — the trend is clearly deteriorating and recovery visibility remains low until management provides forward guidance.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,004
737
882
829
1,019
699
816
853
860
640
842
841
845
Expenses
896
661
798
731
888
607
730
780
784
609
786
800
821
Operating Profit
108
75
84
98
131
92
86
73
75
31
56
41
23
OPM %
11%
10%
10%
12%
13%
13%
11%
9%
9%
5%
7%
5%
3%
Other Income
16
12
11
9
11
40
14
14
10
9
5
-23
33
Interest
2
1
1
4
4
5
5
4
5
5
5
5
5
Depreciation
9
9
9
11
15
20
21
23
22
25
27
27
27
PBT
113
78
85
92
123
107
74
59
58
10
30
-13
24
Tax %
22%
24%
26%
23%
25%
21%
28%
30%
32%
44%
35%
-4%
51%
Net Profit
88
59
62
70
92
84
54
41
40
5
19
-12
12
EPS in Rs
4.8
3.19
3.39
3.83
5
4.58
2.93
2.24
2.17
0.29
1.05
-0.67
0.63
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
1,012
1,024
915
917
1,141
1,102
1,305
2,343
3,528
3,466
3,228
3,168
Expenses
919
910
846
865
1,062
1,024
1,192
2,149
3,220
3,094
2,913
3,016
Operating Profit
93
114
69
52
79
78
112
194
308
372
315
152
OPM %
9%
11%
8%
6%
7%
7%
9%
8%
9%
11%
10%
5%
Other Income
34
18
22
27
32
30
26
36
45
59
89
24
Interest
2
2
1
1
1
3
3
3
5
10
19
20
Depreciation
38
25
22
24
23
22
22
23
30
44
86
106
PBT
86
105
68
53
88
83
113
205
319
377
299
50
Tax %
9%
22%
34%
26%
22%
15%
28%
27%
25%
25%
27%
52%
Net Profit
78
82
45
39
68
70
81
150
240
283
219
24
EPS in Rs
4.3
4.63
2.49
2.18
3.73
3.85
4.42
8.18
13.05
15.42
11.91
1.3
Div. Payout %
38%
35%
65%
74%
57%
70%
49%
51%
34%
39%
50%
278%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
35
36
36
36
37
37
37
37
37
37
37
37
Reserves
587
620
674
690
708
683
765
879
1,041
1,238
1,345
1,272
Borrowings
17
16
4
6
0
0
0
21
42
169
195
173
Other Liabilities
504
485
473
401
502
442
792
1,281
1,499
1,450
1,581
1,574
Total Liabilities
1,144
1,157
1,187
1,133
1,247
1,162
1,594
2,218
2,619
2,894
3,157
3,056
Fixed Assets
302
272
270
297
290
294
284
286
317
474
567
561
CWIP
1
1
31
4
2
2
1
2
7
43
18
6
Investments
158
145
134
201
211
164
335
463
543
497
428
418
Other Assets
682
738
752
631
744
702
975
1,467
1,752
1,880
2,144
2,072
Total Assets
1,144
1,157
1,187
1,133
1,247
1,162
1,594
2,218
2,619
2,894
3,157
3,056
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
150
51
20
101
33
15
225
188
162
199
43
200
Investing
-77
2
-8
-69
-3
66
-164
-137
-78
-6
75
-6
Financing
-40
-68
-4
-25
-43
-98
-6
-44
-93
-124
-161
-187
Net Cash Flow
33
-15
9
8
-14
-18
55
6
-9
70
-42
6
Free Cash Flow
154
39
-16
85
19
8
217
169
127
111
-1
157
CFO/OP
151
76
59
221
68
42
213
120
73
82
46
178
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
101
131
118
105
98
109
127
80
82
68
63
64
Inventory Days
164
79
82
63
76
73
64
86
55
41
56
60
Days Payable
128
162
167
137
140
124
169
106
84
92
106
132
Cash Conversion Cycle
137
48
33
30
33
59
21
60
54
16
12
-8
Working Capital Days
26
46
66
51
39
65
12
4
8
16
32
63
ROCE %
12%
16%
10%
6%
11%
11%
15%
23%
31%
29%
18%
6%

Shareholding Pattern

As of Mar 2026
Promoters 32.81%
Public 32.23%
FIIs 17.74%
DIIs 12.69%
Others 4.54%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
32.91%
32.85%
32.83%
32.83%
32.83%
32.83%
32.82%
32.87%
32.82%
32.82%
32.82%
32.81%
32.81%
32.81%
32.81%
32.81%
32.81%
32.81%
32.81%
32.81%
32.81%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
18.87%
18.55%
19.03%
18.63%
17.16%
16.86%
17.52%
17.32%
17.74%
DIIs
14.75%
6.86%
6.70%
8.27%
8.78%
9.92%
10.22%
7.69%
7.84%
7.62%
9.23%
12.13%
13.69%
16.66%
17.34%
18.20%
19.51%
17.44%
14.84%
13.64%
12.69%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
27.51%
34.56%
33.50%
32.44%
34.73%
33.01%
31.80%
33.73%
33.38%
32.51%
32.16%
30.37%
28.71%
26.43%
25.79%
25.52%
25.78%
28.20%
30.21%
31.95%
32.23%
Others
24.83%
25.73%
26.97%
26.46%
23.66%
24.23%
25.16%
25.71%
25.95%
27.05%
25.78%
24.69%
5.93%
5.55%
5.04%
4.85%
4.75%
4.70%
4.62%
4.28%
4.54%
No. of Shareholders
99,690
2,00,612
2,03,249
2,07,586
2,79,057
2,76,096
2,61,294
2,79,331
2,83,459
2,77,224
2,96,931
3,14,475
3,24,849
3,27,689
3,49,924
3,53,099
3,51,432
3,86,468
4,03,110
4,06,848
4,00,397

Documents

1
Concall - May 2017 May 2017
2
Concall - Aug 2017 Aug 2017
3
Concall - May 2023 May 2023
4
Concall - Jul 2023 Jul 2023
5
Concall - Nov 2023 Nov 2023

Frequently Asked Questions about Praj Industries Ltd

What does Praj Industries Ltd do?
Praj Industries Ltd., founded in 1983 is a leading biotechnology and engineering company globally. It offers sustainable solutions in bioenergy, water purification, process equipment, breweries, and wastewater treatment. Company is focused on the environment , energy and farm-to-fuel technology ...
Where is Praj Industries Ltd (PRAJIND) listed?
Praj Industries Ltd is listed on the Indian stock exchanges. It is listed on NSE: PRAJIND and BSE: 522205. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Praj Industries Ltd belong to?
Praj Industries Ltd operates in the Industrials sector within the Industrial Manufacturing industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Praj Industries Ltd?
Praj Industries Ltd has a market capitalisation of approximately ₹6368.20 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Praj Industries Ltd?
The Price-to-Earnings (PE) ratio of Praj Industries Ltd is 268.19. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Praj Industries Ltd?
Over the past 52 weeks, Praj Industries Ltd has traded between a low of ₹273 and a high of ₹513.8. This range helps investors understand the stock's price volatility and recent trading levels.
Does Praj Industries Ltd pay dividends?
Yes, Praj Industries Ltd has a dividend yield of 1.72%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Praj Industries Ltd?
Praj Industries Ltd has a Return on Equity (ROE) of 22.23%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Praj Industries Ltd on Tapetide?
On Tapetide, you can view Praj Industries Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Praj Industries Ltd., founded in 1983 is a leading biotechnology and engineering company globally. It offers sustainable solutions in bioenergy, water purification, process equipment, breweries, and wastewater treatment. Company is focused on the environment , energy and farm-to-fuel technology solution. Company has global offices in Thailand, Philippines, and the USA.[1]

Website praj.net
CEO Mr. Ashish Madhukar Gaikwad
Employees 1,844
Listed 1995-10-11
Face Value ₹ 2
Issued Size 18,38,13,088

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