NSEI:PRAJIND

Stock Analysis Report

Executive Summary

Praj Industries Limited engages in the process and project engineering activities in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Risks

  • Praj Industries has significant price volatility in the past 3 months.

Share Price & News

How has Praj Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.2%

NSEI:PRAJIND

1.4%

IN Construction

0.4%

IN Market


1 Year Return

29.9%

NSEI:PRAJIND

-10.2%

IN Construction

-13.4%

IN Market

PRAJIND outperformed the Construction industry which returned -10.2% over the past year.

PRAJIND outperformed the Market in India which returned -13.4% over the past year.


Share holder returns

PRAJINDIndustryMarket
7 Day-4.2%1.4%0.4%
30 Day-16.6%-5.7%-3.7%
90 Day-25.6%-10.1%-7.4%
1 Year32.1%29.9%-9.3%-10.2%-11.7%-13.4%
3 Year17.5%10.9%20.3%16.5%18.7%12.4%
5 Year73.8%58.5%36.0%27.9%37.5%24.5%

Price Volatility Vs. Market

How volatile is Praj Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Praj Industries undervalued based on future cash flows and its price relative to the stock market?

25.17x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Praj Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Praj Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Praj Industries is overvalued based on earnings compared to the IN Construction industry average.

Praj Industries is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Praj Industries is poor value based on expected growth next year.


Price Based on Value of Assets

Praj Industries is overvalued based on assets compared to the IN Construction industry average.


Next Steps

Future Growth

How is Praj Industries expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Praj Industries's revenue is expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).

Praj Industries's earnings are expected to grow significantly at over 20% yearly.

Praj Industries's revenue growth is expected to exceed the India market average.

Praj Industries's earnings growth is expected to exceed the India market average.

Praj Industries's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Praj Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Praj Industries performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Praj Industries's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Praj Industries's 1-year earnings growth exceeds its 5-year average (72.6% vs -6.1%)

Praj Industries's earnings growth has exceeded the IN Construction industry average in the past year (72.6% vs 1.3%).


Return on Equity

Praj Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Praj Industries used its assets less efficiently than the IN Construction industry average last year based on Return on Assets.


Return on Capital Employed

Praj Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Praj Industries's financial position?


Financial Position Analysis

Praj Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Praj Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Praj Industries's level of debt (0%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (3.6% vs 0% today).

Debt is well covered by operating cash flow (80467.6%, greater than 20% of total debt).

Praj Industries earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 20992.7x debt.


Next Steps

Dividend

What is Praj Industries's current dividend yield, its reliability and sustainability?

2.23%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Praj Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

Praj Industries's dividend is below the markets top 25% of dividend payers in India (2.53%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Praj Industries's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Shishir Joshipura (57yo)

1.3yrs

Tenure

₹28,580,000

Compensation

Mr. Shishir Joshipura, B.E. (Mech)., was Managing Director of SKF India Ltd. from December 1, 2009 until March 31, 2018. Mr. Joshipura also served as Country Manager of India at SKF India Ltd. and its Head ...


CEO Compensation Analysis

Shishir's remuneration is higher than average for companies of similar size in India.

Insufficient data for Shishir to compare compensation growth.


Management Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

The tenure for the Praj Industries management team is about average.


Board Age and Tenure

2.6yrs

Average Tenure

57yo

Average Age

The average tenure for the Praj Industries board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Sell₹2,735,60825 Jan 19
Pramod Kumbhar
EntityIndividual
Role
Co-President
President
Shares19,000
Max Price₹143.98
Sell₹324,26821 Jan 19
Mallikarjun Navalgund
EntityIndividual
Role
Co-President
President
Shares2,191
Max Price₹148.00
Sell₹1,336,25018 Jan 19
Aniruddha Phadke
EntityIndividual
Shares10,000
Max Price₹133.62
Sell₹2,500,10816 Jan 19
Vasudeo Joshi
EntityIndividual
Shares17,750
Max Price₹140.85
Sell₹1,675,26014 Jan 19
Avinash Padhye
EntityIndividual
Shares12,000
Max Price₹139.61
Sell₹1,622,69214 Jan 19
V. Ramachandran
EntityIndividual
Shares12,500
Max Price₹129.82
Sell₹2,430,92011 Jan 19
Mallikarjun Navalgund
EntityIndividual
Role
Co-President
President
Shares20,000
Max Price₹121.55
Sell₹974,92419 Dec 18
Vasudeo Joshi
EntityIndividual
Shares8,300
Max Price₹118.94
Sell₹586,43826 Nov 18
Bhaskar Kodali
EntityIndividual
Shares5,000
Max Price₹117.29
Sell₹284,62514 Nov 18
Aniruddha Phadke
EntityIndividual
Shares2,500
Max Price₹113.85
Sell₹5,316,63516 Oct 18
Dattatraya Nimbolkar
EntityIndividual
Role
Chief Compliance Officer
Chief Internal Auditor
Shares45,000
Max Price₹118.15
Sell₹1,634,99901 Oct 18
Sanjay Chaturvedi
EntityIndividual
Shares15,000
Max Price₹109.00
Sell₹1,095,97424 Sep 18
Vasudeo Joshi
EntityIndividual
Shares10,000
Max Price₹109.60
Buy₹2,966,59920 Sep 18
Karthik Ranganathan
EntityIndividual
Shares32,400
Max Price₹98.70
Sell₹1,388,19919 Sep 18
Parag Kolte
EntityIndividual
Shares15,000
Max Price₹92.55
Sell₹2,458,93019 Sep 18
Abhijit Dani
EntityIndividual
Shares24,606
Max Price₹99.93
Sell₹1,050,10018 Sep 18
Avinash Padhye
EntityIndividual
Shares10,000
Max Price₹105.01
Sell₹1,221,87014 Sep 18
Ghansham Deshpande
EntityIndividual
Role
Co-President
President
Shares13,335
Max Price₹91.63
Sell₹1,380,65714 Sep 18
Vasudeo Joshi
EntityIndividual
Shares14,770
Max Price₹94.25

Ownership Breakdown


Management Team

  • Pramod Chaudhari (70yo)

    Executive Chairman

    • Tenure: 15.0yrs
    • Compensation: ₹51.63m
  • Shishir Joshipura (57yo)

    CEO, MD & Additional Director

    • Tenure: 1.3yrs
    • Compensation: ₹28.58m
  • Pramod Kumbhar (54yo)

    President

    • Tenure: 0.0yrs
  • Dattatraya Nimbolkar (60yo)

    Chief Internal Auditor

    • Tenure: 7.9yrs
    • Compensation: ₹9.09m
  • Mallikarjun Navalgund (59yo)

    President

    • Tenure: 0.0yrs
  • S. Kumar (54yo)

    Executive Vice President

    • Tenure: 0.0yrs
  • Ghansham Deshpande (54yo)

    President

    • Tenure: 0.0yrs
  • Atul Mulay (54yo)

    President

    • Tenure: 0.0yrs
  • Sachin Raole (49yo)

    CFO, Director of Finance & Commercial and Executive Director

    • Tenure: 2.6yrs
    • Compensation: ₹7.71m
  • Sanjay Sapru (47yo)

    Executive Vice President

    • Tenure: 0.0yrs

Board Members

  • Sivaramakrishnan Iyer (52yo)

    Independent Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: ₹1.75m
  • Berjis Desai (63yo)

    Independent Non-Executive Director

    • Tenure: 26.0yrs
    • Compensation: ₹2.10m
  • Pramod Chaudhari (70yo)

    Executive Chairman

    • Tenure: 15.0yrs
    • Compensation: ₹51.63m
  • Shishir Joshipura (57yo)

    CEO, MD & Additional Director

    • Tenure: 1.3yrs
    • Compensation: ₹28.58m
  • Shridhar Shukla (57yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹550.00k
  • Parimal Chaudhari (63yo)

    Non-Executive Director

    • Tenure: 13.1yrs
    • Compensation: ₹1.65m
  • Sachin Raole (49yo)

    CFO, Director of Finance & Commercial and Executive Director

    • Tenure: 2.6yrs
    • Compensation: ₹7.71m
  • Mrunalini Joshi (52yo)

    Independent Director

    • Tenure: 2.0yrs
    • Compensation: ₹550.00k

Company Information

Praj Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Praj Industries Limited
  • Ticker: PRAJIND
  • Exchange: NSEI
  • Founded: 1985
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹19.535b
  • Shares outstanding: 182.83m
  • Website: https://www.praj.net

Location

  • Praj Industries Limited
  • Praj Tower
  • 274 & 275/2, Bhumkar Chowk-Hinjewadi Road
  • Pune
  • Maharashtra
  • 411057
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
522205BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1995
PRAJINDNSEI (National Stock Exchange of India)YesEquity SharesININRDec 1995

Biography

Praj Industries Limited engages in the process and project engineering activities in India and internationally. It offers technologies, products, and services for ethanol plants, including fermentation tec ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 12:47
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.