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Praj Industries Ltd

NSE: PRAJIND BSE: 522205

285.50

(-0.26)%

Sat, 07 Feb 2026, 05:49 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.4x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
  • Praj Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Praj Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for Praj Industries is expected to increase by more than 50% in 2 years time.
  • Praj Industries's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Performance (ROE) is expected to be above the current IN Construction industry average.
  • An improvement in Praj Industries's performance (ROE) is expected over the next 3 years.
  • Praj Industries's revenue growth is expected to exceed the India market average.
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Cons

  • Praj Industries's earnings are expected to grow by 15.7% yearly, however this is not considered high growth (20% yearly).
  • Praj Industries's earnings growth is positive but not above the India market average.
  • Praj Industries's earnings are expected to decrease over the next year.
  • Praj Industries's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Praj Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Praj Industries's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Praj Industries's revenue is expected to grow by 16.8% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Praj Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Praj Industries is profitable, therefore cash runway is not a concern.
  • Praj Industries is profitable, therefore cash runway is not a concern.
  • Praj Industries has no debt, it does not need to be covered by operating cash flow.
  • Praj Industries has no debt, it does not need to be covered by short term assets.
  • Praj Industries's cash and other short term assets cover its long term commitments.
  • Praj Industries has no debt compared to 5 years ago when it was 2.7%.
  • Praj Industries has no debt, therefore coverage of interest payments is not a concern.
  • Praj Industries has no debt.
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Praj Industries board of directors is about average.
  • Shishir's remuneration is about average for companies of similar size in India.
  • The tenure for the Praj Industries management team is about average.
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Cons

  • Praj Industries individual insiders have only sold shares in the past 3 months.

misc

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Pros

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    Cons

    • Praj Industries is covered by less than 3 analysts.
    • Praj Industries has significant price volatility in the past 3 months.

    past

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    Pros

    • Praj Industries's 1-year earnings growth exceeds its 5-year average (3.2% vs -0.5%)
    • Praj Industries used its assets more efficiently than the IN Construction industry average last year based on Return on Assets.
    • Praj Industries has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Praj Industries's earnings growth has exceeded the IN Construction industry average in the past year (3.2% vs 2.3%).
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    Cons

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

    value

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    Pros

    • BSE:522205 is up 11% outperforming the Construction industry which returned 7.1% over the past month.
    • BSE:522205 is up 11% outperforming the market in India which returned 8% over the past month.
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    Cons

    • 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%).
    • Praj Industries is overvalued based on assets compared to the IN Construction industry average.
    • Praj Industries is poor value based on expected growth next year.
    • 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.
    • 522205 underperformed the Construction industry which returned -40% over the past year.
    • 522205 underperformed the Market in India which returned -14.5% over the past year.

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