The Economic Times daily newspaper is available online now.

    Buy Praj Industries, target price Rs 477: Axis Securities

    Synopsis

    Promoters held 32.83 per cent stake in the company as of 31-Mar-2022, while FIIs owned 13.84 per cent, DIIs 8.83 per cent.

    buyAgencies
    Promoters held 32.83 per cent stake in the company as of 31-Mar-2022, while FIIs owned 13.84 per cent, DIIs 8.83 per cent.
    Axis Securities has buy call on Praj Industries with a target price of Rs 477. The current market price of Praj Industries Ltd. is Rs 328.85. Time period given by analyst is one year when Praj Industries Ltd. price can reach defined target.

    Praj Industries Ltd., incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 6036.42 Crore) operating in Engineering sector.

    Praj Industries Ltd. key Products/Revenue Segments include Sale of services and Scrap for the year ending 31-Mar-2021.


    Financials
    For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 836.48 Crore, up 41.63 % from last quarter Total Income of Rs 590.63 Crore and up 46.41 % from last year same quarter Total Income of Rs 571.34 Crore. Company reported net profit after tax of Rs 57.65 Crore in latest quarter.

    Investment Rationale
    Praj’s reported the highest-ever quarterly revenue of Rs 829 Cr (our estimate - Rs 689 Cr),up 46%YoY and 42% QoQ. It posted an EBITDA of Rs 74 Cr (our estimate – Rs59 Cr), a 3% YoY and 57% QoQ. Praj reported an EBITDA margin of9% (beating our estimate – 8.6%), an88bps QoQ expansion as operational leverage kicks in and raw material prices show signs of stabilising. PAT came in at Rs 58 Cr (our estimate - Rs 43 Cr) as compared to Rs 52 Cr in Q4FY21, a growth of 11% YoY. The orderbook execution rate remained constant at 32%. The company’s key growth levers remain robust and therefore the brokerage maintains BUY rating on the stock with an unchanged Target Price of Rs 477/share, valuing the company at 22xFY24EPS.

    Promoter/FII Holdings
    Promoters held 32.83 per cent stake in the company as of 31-Mar-2022, while FIIs owned 13.84 per cent, DIIs 8.83 per cent.



    (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in