Mehabe score: 8 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
Praj Industries Ltd, incorporated in 1985 and headquartered in Pune has a presence across the globe with more than 750 references in more than 75 countries. # It began as a supplier of an ethanol plant, today it is a global company providing various solutions with a focus on the environment, energy, and agri-process industry. #
Main Points
Brand
2nd in a list of the world’s 50 Hottest companies in the global bio-economy for 2021 in the Low Carbon Fuels and Renewable Chemicals category.
It tops the list that includes fortune 500 companies and global majors #Site:PRAJINDMain Symbol:PRAJIND
Stock trades at 366.0, above its 50dma 341.07. It also trades above its 200dma 224.47. The stock remains bullish on techicals
The 52 week high is at 407.00 and the 52week low is at 58.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 58.60%
Weakness
– Stock is trading at 8.37 times its book value
-The company has delivered a poor sales growth of 4.97% over past five years.
-Promoter holding is low: 32.91%
– has a low return on equity of 9.30% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.1x. GMM Pfaudler trades at the industry’s max P/E of 90.58x. PRAJIND trades at a P/E of 82.8x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. PRAJIND has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 5.0%. The max 1- month return was given by ISGEC Heavy: a return of 27.88 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 567.0 cr compared to Rs 296.0 cr for period ended Mar 2020, a rise of 91.6%
Operating Profits reported at Rs 75.0 cr for period ended Mar 2021 vis-vis 32.0 for period ended Mar 2020 .
Operating Margins expanded 241.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.84 compared to Rs 1.54 for previous quarter ended Dec 2020 and Rs 1.36 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1305.0 cr for period ended Mar 2021 vis-vis sales of Rs 1102.0 cr for the period ended Mar 2020, a healthy growth of 15.6%. The 3 year sales cagr stood at 12.5%.
Operating margins expanded to 9.0% for period ended Mar 2021 vis-vis 7.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 81.0 cr for period ended Mar 2021 vis-vis sales of Rs 70.0 cr for the period ended Mar 2020, rising 13.6%.
Company recorded a healthy Net Profit CAGR of 27.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 225.0 cr for period ended Mar 2021 vis-vis Rs 15.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 466% on a 1 Year basis vis-vis a return of 68% over the last 3 Years. – The compounded sales growth on a TTM bassis is 18% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is 23% vis-vis a compounded profit growth of 33% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 11.62% vis-vis 12.25% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 40.26% vis-vis 38.71% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 58.60% – Stock is trading at 8.37 times its book value
-The company has delivered a poor sales growth of 4.97% over past five years.
-Promoter holding is low: 32.91%
– has a low return on equity of 9.30% for last 3 years.
