Buy Praj Industries, target price Rs 507: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Praj Industries with a target price of Rs 507. The current market price of Praj Industries Ltd. is Rs 384.95. 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 7162.33 Crore) operating in Engineering sector.

Praj Industries Ltd. key Products/Revenue Segments include Scrap and Sale of services for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 735.35 Crore, down -12.09 % from last quarter Total Income of Rs 836.48 Crore and up 87.92 % from last year same quarter Total Income of Rs 391.32 Crore. Company reported net profit after tax of Rs 41.26 Crore in latest quarter.

Investment Rationale
The brokerage anticipates PRAJ’s Revenue/PAT CAGR at 17.4%/29.3% over FY2022-25E led by robust order book, healthy tender pipeline, strong market leadership, pickup in execution, better operational efficiencies and well managed working capital cycle. The stock is currently trading at a P/E of 31.5x/23.1x on FY23/24E earnings. Initiate ‘BUY’.

Promoter/FII Holdings
Promoters held 32.83 per cent stake in the company as of 30-Jun-2022, while FIIs owned 15.93 per cent, DIIs 10.0 per cent.