Fundamental Analysis

PRAJ INDUSTRIES LTD.

Ticker : 522205
BUY: Rs369.55
Target: Rs420

Praj Industries Ltd is a leading process solutions company with expertise in integrated offerings for bio-energy, high purity water solutions, and engineering-led businesses namely zero liquid discharge solutions, critical process equipment & systems, and brewery plants. On a consolidated quarterly front, the compa- ny recorded an increase of 104.58 per cent in the net sales & operating income, which stood at Rs 532.41 crore for Q2FY22 as compared to the net sales and operating income of Rs 260.24 crore reported for Q2FY22. The operating profit significantly rose by 139.96 per cent to reach Rs 52.72 crore in Q2FY22 from Rs 21.97 crore posted in Q2FY21. The company reported a net profit of Rs 33.34 crore in Q2FY22 as compared to Rs 11.39 crore recorded in Q2FY21, exhibiting robust growth. The compa- ny is likely to reap the benefits of multiple opportunities provided by the bio-economic revolution, giving strong growth and revenue visibility for the coming period. Hence, we recommend BUY.