Downgrade: Here's How Analysts See Praj Industries Limited (NSE:PRAJIND) Performing In The Near Term

Today is shaping up negative for Praj Industries Limited (NSE:PRAJIND) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

After the downgrade, the six analysts covering Praj Industries are now predicting revenues of ₹33b in 2026. If met, this would reflect a credible 3.3% improvement in sales compared to the last 12 months. Per-share earnings are expected to climb 16% to ₹8.87. Before this latest update, the analysts had been forecasting revenues of ₹37b and earnings per share (EPS) of ₹13.92 in 2026. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

Check out our latest analysis for Praj Industries

The consensus price target fell 20% to ₹468, with the weaker earnings outlook clearly leading analyst valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Praj Industries' revenue growth is expected to slow, with the forecast 4.5% annualised growth rate until the end of 2026 being well below the historical 21% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Praj Industries.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Praj Industries. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Praj Industries' revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Praj Industries going out to 2028, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.