Review

PRAJ INDUSTRIES LTD.
Ticker: 522205
FV:  ₹ 2 
52-Week H/L: ₹ 448.25/289.05


We recommended Praj Industries in volume no. 38, issue no. 35 (dated June 20, 2022) when the scrip was trading at Rs 333.33. 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 recorded a net profit of Rs 57.65 crore in comparison to the net profit of Rs 52.01 crore in Q4FY21, increasing by 10 per cent. In the past six months, the stock has recovered almost 22 per cent from its low made on May 25, 2022. On the basis of its PE ratio ascompared to the average PE ratio of its peer companies and the average PE ratio of the construction industry, the stock appears to be overvalued. Hence, we recommend our investor-readers to BOOK PROFIT at Rs 373.85 with a gain of 12.1 per cent.