Fundamental Analysis

PRAJ INDUSTRIES LTD. 

Ticker : 522205 
BUY : Rs 333.30 
Target : Rs 375

Praj Industries Ltd is a global company providing various solutions with a focus on the environment, energy, and agriprocess industry. On a consolidated basis, in Q4FY22, the company recorded net sales and other operating income of Rs 829.01 crore, higher by 46.18 per cent than Rs 567.10 crore reported in Q4FY21. The operating profit was recorded at Rs 85.5 crore in Q4FY22, a rise of 8 per cent as compared to an operating profit of Rs 79.17 crore in Q4FY21. Q4FY22 registered a net profit of Rs 57.65 crore in comparison with the net profit of Rs 52.01 crore in Q4FY21, increasing by 10 per cent. Some factors that are auguring well for Praj Industries include robust growth in its key segment BioEnergy in domestic business as well as widening of the demand-supply gap of ethanol. The company is also witnessing further inclination towards grain-based distilleries and decarbonisation impetus. Hence, we recommend BUY.