Praj Industries Ltd (PRAJIND) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kennametal India

Titagarh Rail

Standard Enginee

Marine Electric.

Praj Industries

Cyient DLM

Centum Electron

Dynamatic Tech.

Elecon Engg.Co

Jupiter Wagons

Lohia Corp

Why is Praj Industries Ltd ?

High Management Efficiency with a high ROE of 15.85%

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -20.47% of over the last 5 years

Flat results in Jun 26

PAT(Latest six months) At Rs 19.24 cr has Grown at -57.38%
ROCE(HY) Lowest at 6.52%
NON-OPERATING INCOME(Q) is 94.92 % of Profit Before Tax (PBT)

With ROE of 4.1, it has a Very Expensive valuation with a 4.9 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -15.35%, its profits have fallen by -56.8%

High Institutional Holdings at 31.85%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.42% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -15.35% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Praj Industries should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Praj Industries for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Praj Industries

-14.98%

-0.37

40.74%

Sensex

-4.88%

-0.36

13.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.74%

EBIT Growth (5y)

-20.47%

EBIT to Interest (avg)

35.31

Debt to EBITDA (avg)

0.40

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

2.51

Tax Ratio

50.92%

Dividend Payout Ratio

277.55%

Pledged Shares

Institutional Holding

31.85%

ROCE (avg)

37.23%

ROE (avg)

15.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

107

Industry P/E

Price to Book Value

4.95

EV to EBIT

134.63

EV to EBITDA

40.14

EV to Capital Employed

6.93

EV to Sales

1.86

PEG Ratio

Dividend Yield

1.02%

ROCE (Latest)

5.31%

ROE (Latest)

4.15%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

PAT(Q)

At Rs 11.61 cr has Grown at 117.4%

OPERATING CF(Y)

Highest at Rs 200.09 Cr

DPR(Y)

Highest at 277.55%

-9What is not working for the Company

PAT(Latest six months)

At Rs 19.24 cr has Grown at -57.38%

ROCE(HY)

Lowest at 6.52%

NON-OPERATING INCOME(Q)

is 94.92 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Praj Industries

Profit After Tax (PAT) - Quarterly

At Rs 11.61 cr has Grown at 117.4%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 200.09 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Dividend Payout Ratio (DPR) - Annually

Highest at 277.55%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Praj Industries

Non Operating Income - Quarterly

is 94.92 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT