The Praj Industries Limited (NSE:PRAJIND) Analyst Just Boosted Their Forecasts By A Substantial Amount

Praj Industries Limited (NSE:PRAJIND) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After the upgrade, the solitary analyst covering Praj Industries is now predicting revenues of ₹18b in 2022. If met, this would reflect a huge 37% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 101% to ₹8.90. Previously, the analyst had been modelling revenues of ₹16b and earnings per share (EPS) of ₹7.20 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Praj Industries

It will come as no surprise to learn that the analyst has increased their price target for Praj Industries 33% to ₹400 on the back of these upgrades.

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. The analyst is definitely expecting Praj Industries' growth to accelerate, with the forecast 37% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Praj Industries to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Praj Industries.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Praj Industries going out as far as 2023, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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