Fundamental Recommendation

PRAJ INDUSTRIES LTD.

BUY:Rs.143
Target:Rs.160
Ticker : 522205
FV: Rs.2
Equity: Rs. 36.48 Cr.
52-Week H/L:Rs.168/72.50



Praj Industries is engaged in the business of process and project engineering. Its business lines include ethanol plants, brewery plants, water and wastewater, process equipment and systems, high purity systems, bio-products and customised research services and solutions (CRSS). Praj Industries net sales stood at Rs 330.31 crore in December 2018, up 33.04 per cent Rs. 248.28 crore in December 2017. The company’s net profit stood at Rs 22.43 crore in December 2018, up 197.88 per cent from Rs 7.53 crore in December 2017. Praj has about 70 per cent market share in the domestic ethanol plant installed capacity. In the December quarter, the order inflows saw an increase of 68 per cent. The government’s focus on increasing ethanol blending augurs well for the company. Thus, we recommend a BUY.