Buy Praj Industries Ltd With A Target Price of Rs 472 Says Axis Securities

Axis Securities, a brokering business has suggested buying the stock of Praj Industries Ltd with a target price of Rs 472. According to the brokerage, the prevailing market price has a potential upside of 33%. Praj Industries Ltd is today India's largest prominent bio-based technology and engineering company, having operations throughout the globe.

Q2 FY22 results of the company

According to the consolidated performance for Q2 FY22, the company's income from operations stood at Rs. 532.41 crore (Q1 FY22: Rs. 386.26 crore; Q2 FY21: Rs. 260.24 crore), PBT is at Rs. 46.77 crore for the period (Q1 FY22: Rs. 29.80 crore; Q2 FY21: Rs. 15.67 crore), PAT is at Rs. 33.34 crore (Q1 FY22: Rs. 22.20 crore; Q2 FY21: Rs. 11.39) and order intake during the quarter Rs. 745 crore (Q1 FY22: Rs. 661 crore; Q2 FY21: Rs. 405 crore).

According to the H1 FY22 - Consolidated results of the company, income from operations stood at Rs. 918.67 crore (H1 FY21: Rs. 389.79 crore), PBT is at Rs. 76.57 crore for the period (H1 FY21: Rs. 1.15 crore), PAT is at Rs. 55.54 crore (H1 FY21: Rs. 0.89 crore) and order intake Rs. 1406 crore (H1 FY21: Rs. 715 crore).

Buy Praj Industries Ltd with a target price of Rs 472

According to the brokerage "Praj is witnessing strong growth in its key segment BioEnergy in Domestic business, the overall demand-supply gap of Ethanol, increased interest in grain-based distilleries and decarbonisation impetus is auguring well for Praj along with development in other key verticals such as CPS, ZLD & High Purity gaining traction. Praj is a key beneficiary of multiple tailwinds provided by the bio-economic revolution, giving strong growth & revenue visibility for the next 3-5 years."

Axis Securities has claimed in its research report that "We maintain our BUY with a revised target price of Rs 472 valuing the company at 35x (~20% discount to TTM PE of 45x) FY23 EPS, implying an upside of 33% from the CMP 355."

Disclaimer

The above stock is picked from the brokerage report of Axis Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.