PRAJ Industries Limited (PRAJIND) AI Stock Analysis

• Market Cap: ₹65.98B
• Dividend Yield: 1.67%
• Average Volume (3M): 92.58K
• Price to Earnings (P/E): 47.1
• Beta (1Y): 1.32
• Revenue Growth: -7.57%
• EPS Growth: -54.66%
• Country: IN
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.30
• Shares Outstanding: 183,813,100
• 10 Day Avg. Volume: 134,036
• 30 Day Avg. Volume: 92,585
• PEG Ratio: -1.98
• Price to Book (P/B): 7.12
• Price to Sales (P/S): 3.05
• P/FCF Ratio: -223.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹403.00
• Price Target Upside: 12.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ₹423.00 ▲(17.84% Upside)

PRAJ Industries Limited's overall stock score is primarily influenced by its solid financial performance, which is offset by bearish technical indicators and a high valuation. The company's strong balance sheet and profitability are positive, but the technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation. The absence of earnings call data and corporate events means these factors do not impact the score.

PRAJ Industries Limited Business Overview & Revenue Model

Company Description

Praj Industries Limited operates in the field of bio-based technologies and engineering worldwide. It offers solutions for the ethanol industry, including multi-feed multi-product plants, modernization of existing plants, and renewable fuels comprising BioCNG, iso-butanol, etc.; and high purity system solutions for the biopharma industry, sterile formulations, topical and oral formulations, personal care, and nutraceutical industry. The company also provides customized plants, and equipment and technology solutions to customers in the brewing industry; reactors, pressure vessels, heat exchangers, process columns, and tower proprietary equipment to hydrocarbon industry, petrochemicals, industrial gas plants, and chemical plants; and modular process skids. In addition, it offers wastewater treatment solutions, including treatment and disposal; 3Rs of reduce, recycle, and reuse; ZLD and resource recovery; operation and maintenance services; and value added services. Praj Industries Limited was incorporated in 1985 and is headquartered in Pune, India.

How the Company Makes Money

PRAJ Industries Limited makes money primarily through the sale and licensing of its technology-driven solutions in the bioenergy and environmental sectors. The company generates revenue by designing, manufacturing, and installing equipment for the production of biofuels such as ethanol and biodiesel. It also offers engineering, procurement, and construction (EPC) services for setting up plants and facilities. Another significant revenue stream for PRAJ is its wastewater treatment and high-purity water systems, which are sold to industrial clients. The company has forged strategic partnerships and collaborations to enhance its technological capabilities and expand its market reach, contributing to its revenue growth.

PRAJ Industries Limited Financial Statement Overview

Summary

PRAJ Industries Limited presents a solid financial position with strong profitability and a stable balance sheet, characterized by low leverage and healthy equity levels. However, the slowing revenue growth and fluctuations in cash flow generation pose challenges. Continued focus on revenue enhancement and cash flow management will be critical for sustained financial health.

Income Statement

PRAJ Industries Limited has shown a consistent growth trajectory in revenue over the years, with a notable increase in gross profit margins. The TTM gross profit margin is approximately 37.9%, and the net profit margin stands at 6.8%. However, there is a declining trend in revenue growth rate in recent years, from a high of 78.5% in 2022 to a decrease by 6.9% in 2025. Despite this, the company maintains a strong EBIT margin of 37.9%. Overall, the company demonstrates solid profitability amidst slowing growth.

Balance Sheet

The company’s balance sheet is strong with a low debt-to-equity ratio of 0.14, indicating low leverage. The equity ratio is robust at 43.7%, reflecting a stable financial foundation. Return on equity is at 15.8%, which is healthy but has room for improvement. Overall, the balance sheet highlights a well-managed leverage and a strong equity position, mitigating potential financial risks.

Cash Flow

The free cash flow has shown volatility, with a decrease from 2024 to 2025. The free cash flow growth rate is negative, suggesting challenges in converting income into cash. The operating cash flow to net income ratio is 0.20, and the free cash flow to net income ratio has turned negative, indicating inefficiencies in cash conversion. The cash flow statement highlights a need for improved cash management despite historically positive cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.69B	32.28B	34.66B	35.28B	23.43B	13.05B
Gross Profit	6.86B	6.15B	14.68B	13.27B	3.67B	2.18B
EBITDA	3.01B	3.15B	4.31B	3.53B	2.29B	1.37B
Net Income	1.40B	2.19B	2.83B	2.40B	1.50B	810.47M
Balance Sheet
Total Assets	0.00	31.60B	28.95B	26.19B	22.13B	15.94B
Cash, Cash Equivalents and Short-Term Investments	5.38B	5.40B	6.14B	6.02B	5.52B	4.26B
Total Debt	0.00	1.95B	1.69B	421.45M	210.88M	176.59M
Total Liabilities	-13.82B	17.78B	16.21B	15.41B	12.96B	7.91B
Stockholders Equity	13.82B	13.82B	12.74B	10.78B	9.16B	8.02B
Cash Flow
Free Cash Flow	0.00	-440.75M	1.10B	1.27B	1.56B	2.16B
Operating Cash Flow	0.00	429.64M	1.99B	1.62B	1.75B	2.25B
Investing Cash Flow	0.00	712.40M	-101.18M	-844.42M	-1.27B	-1.64B
Financing Cash Flow	0.00	-1.61B	-1.24B	-933.98M	-443.52M	-62.88M

PRAJ Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 358.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRAJIND, the sentiment is Negative. The current price of 358.95 is below the 20-day moving average (MA) of 376.36, below the 50-day MA of 410.64, and below the 200-day MA of 527.21, indicating a bearish trend. The MACD of -19.28 indicates Positive momentum. The RSI at 38.49 is Neutral, neither overbought nor oversold. The STOCH value of 20.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PRAJIND.

PRAJ Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELECON	78 Outperform	₹131.23B	25.37	―	0.34%	20.07%	45.28%
KSB	68 Neutral	₹141.68B	55.17	―	0.49%	10.55%	17.96%
KIRLPNU	66 Neutral	₹79.17B	37.52	―	0.82%	21.46%	47.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LLOYDSENGG	62 Neutral	₹91.22B	74.11	―	0.40%	43.43%	19.88%
ISGEC	60 Neutral	₹66.42B	28.15	―	0.55%	-2.31%	-8.69%
PRAJIND	55 Neutral	₹65.98B	47.10	―	1.67%	-7.57%	-54.66%

PRAJ Industries Limited Corporate Events

Praj Industries Releases Q4 and FY25 Financial Results

Praj Industries Limited released its investor presentation detailing the audited financial results for the fourth quarter and the financial year ending March 31, 2025. This announcement provides stakeholders with insights into the company’s financial performance, potentially impacting its market positioning and investor confidence.