Praj Industries Limited (PRAJIND) fair value: what the stock is really worth
We calculate from audited financials what Praj Industries Limited is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
Structural break:
The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.
Stretched ValuationStrong overvaluation with only moderate quality.
!Fair value ₹45.77 · Strongly overvalued (−85%)
!Quality 56/100
!Weak Growth(revenue 5y +19.4 %/yr)
!Thin margins · 0.8% net margin (TTM)
✓Low debt · generates free cash flow
·1.15% dividend yield
!Trails peers(3/14)
!Narrow moat24/100
!Evidence only low, so the estimate is less certain
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Praj Industries Limited operates in the field of bio-based technologies and engineering in India and internationally.
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Praj Industries Limited operates in the field of bio-based technologies and engineering in India and internationally. The company offers solutions for the ethanol industry, including multi-feed multi-product plants, modernization of existing plants, and renewable fuels comprising BioCNG, iso-butanol, etc.; and high purity system solutions for the biopharma industry, sterile formulations, topical and oral formulations, personal care, and nutraceutical industry. It also provides customized plants, and equipment and technology solutions to customers in the brewing and beverage industry; reactors, pressure vessels, heat exchangers, columns, and proprietary equipment to hydrocarbon industry, petrochemicals, industrial gas plants, and chemical plants; and modular process packages. In addition, the company offers wastewater treatment solutions, including treatment and disposal; 3Rs of reduce, recycle, and reuse; ZLD and resource recovery; operation and maintenance services; and value added services. Praj Industries Limited was incorporated in 1985 and is headquartered in Pune, India.
Stock analysis
Praj Industries Limited (PRAJIND) currently trades at ₹312.15, while our model-based Fair Value estimate is ₹45.77, implying the stock looks roughly 582.1% overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹100.61 per share, and 0 of the 26 models we run sit above the ₹312.15 price.
Bear case: the Earnings-Based group reads lowest at ₹10.26, and 26 of the 26 models stay below the price. Evidence for this calculation is low.
Quality & growth
The Quality Score stands at 56/100 (solid quality), in the Industrials sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Praj Industries Limited reported revenue of ₹31.7B in FY2026 versus ₹23.4B in FY2022, a compound +7.8%/yr. Reported net income was ₹238M in FY2026, compounding −36.9%/yr from FY2022.
Key figures
Market cap ₹66.2B (≈ $688M) · P/E ratio 240.1 · P/S ratio 1.81 · EPS (TTM) ₹1.30 · Dividend yield 1.2% · Net margin 0.8% · Return on equity 1.8% · Return on assets (EBIT) 16.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 38% below its 52-week high and 14% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −30% fair-value upside, at −85%, PRAJIND screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely (₹10.26 to ₹187.87). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear ₹45.77Fair Value ₹45.77Bull ₹45.77
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−1.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−3.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+19.4%
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.0%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−20.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−21.7%
Dividend (yield on the price)1.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−22% vs −10%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 2%
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+23.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+15.3%
Yearly sales growth analysts expect, extended to five years.
Compare Praj Industries Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Engineering & Construction · 813 stocks
Beats the industry median on 2/13 measures
Overall it trails its industry peers.
Valuation
Quality Score56 · Above median
Fair Value upside−90% · Bottom 25%
Profitability
Return on equity (TTM)2% · Below median
Return on assets1% · Below median
Net margin (TTM)1% · Below median
Operating margin (TTM)0% · Bottom 25%
Growth and dividend
Revenue growth−2% · Below median
Dividend yield (TTM)1.2% · Below median
Valuation Multiplesvs Engineering & Construction median · lower = cheaper
P/E (TTM)240.1× · Priciest 25%
P/B5.05× · Priciest 25%
P/S (TTM)2.09× · Priciest 25%
P/FCF0.4× · Cheapest 25%
EV/EBITDA42.3× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 21
FUTURE (revenue growth)0· sector 14
PAST (return on equity)7· sector 26
HEALTH (low debt)100· sector 94
DIVIDEND (yield)23· sector 40
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Praj Industries Limited (PRAJIND) overvalued or undervalued?
As of Sep 22, 2026, our model estimates a fair value of ₹45.77 versus a price of ₹312.15, about −85% upside (overvalued).
What is the fair value of PRAJIND?
Our model-based fair value for Praj Industries Limited is ₹45.77 (as of Sep 22, 2026), built from audited fundamentals. The current price: ₹312.15.
What is the quality score of PRAJIND?
Praj Industries Limited has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Praj Industries Limited (PRAJIND)?
Our model-based price target is the fair value of ₹45.77 (as of Sep 22, 2026) from 26 valuation models. It is a calculation from audited fundamentals, not an analyst target.
What is the Praj Industries Limited stock forecast for 2026?
Our models put fair value at ₹45.77, about −85% upside versus a price of ₹312.15 (overvalued). The calculation is refreshed regularly with new filings.
What is the revenue of Praj Industries Limited (PRAJIND)?
Praj Industries Limited reported trailing-twelve-month revenue of about ₹31.7B (latest available figure, as of Sep 22, 2026).
Does Praj Industries Limited pay a dividend?
Praj Industries Limited currently shows a dividend yield of about 1.15% relative to its recent price (as of Sep 22, 2026).
What growth is priced into Praj Industries Limited (PRAJIND)?
For today's price to be fair in a discounted-cash-flow model, Praj Industries Limited would have to grow free cash flow by +23.8 % per year for five years (discount rate 12.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +19.4 % per year. As of Sep 22, 2026.
What discount rate (WACC) does the fair value of PRAJIND use?
Our models discount Praj Industries Limited at 12.4 %: a base by market capitalisation (small), damped by beta 0.08, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Praj Industries Limited that is +23.8 % per year a year over ten years, using the same discount rate (12.4 %) and the same formula as our fair value.
How much growth has Praj Industries Limited (PRAJIND) delivered so far?
Over the past 5 years revenue at Praj Industries Limited grew +19.4 % a year. The price currently implies +23.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Praj Industries Limited (PRAJIND) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into Praj Industries Limited (+23.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Praj Industries Limited (PRAJIND)?
The free-cash-flow yield on the price is 2.99 %: that much free cash flow Praj Industries Limited produces per unit of market value. When it exceeds the discount rate of our models (12.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Praj Industries Limited (PRAJIND)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Praj Industries Limited it is ₹45.77 per share (as of Sep 22, 2026), against a price of ₹312.15. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Praj Industries Limited stock overvalued or undervalued in 2026?
As of Sep 22, 2026, PRAJIND trades above its calculated fair value: price ₹312.15, fair value ₹45.77, a gap of about −85% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PRAJIND?
No. The price is what the market pays today (₹312.15); the fair value is what the company's own numbers justify (₹45.77). For Praj Industries Limited the two are ₹266.38 per share apart. That gap is exactly why we show both numbers side by side.
How much is Praj Industries Limited worth?
The market values Praj Industries Limited at about ₹66.2B (market capitalisation, as of Sep 22, 2026). Per share that is ₹312.15; our models calculate a fair value of ₹45.77 per share.
What is the P/E ratio of PRAJIND?
Praj Industries Limited trades at a price-to-earnings ratio of 240.1 (as of Sep 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹45.77 is built from several models across several years. Other multiples: P/B 5.1, P/S 2.1, EV/EBITDA 42.3.
How solid is the balance sheet of Praj Industries Limited (PRAJIND)?
Balance-sheet figures for Praj Industries Limited (as of Sep 22, 2026): return on equity 1.8%. They feed the Quality Score of 56/100, which measures business quality independently of the share price.
How far is PRAJIND from its 52-week high?
Praj Industries Limited trades at ₹312.15, about 38% below its 52-week high of ₹505.45 and 14% above the low of ₹273.00 (as of Sep 22, 2026). Distance from the high says nothing about value: that is what the fair value of ₹45.77 is for.
Which stocks are comparable to Praj Industries Limited?
From the same area (Industrials) we also value Quanta Services, Inc, Vinci SA, Comfort Systems USA, Inc, Larsen & Toubro Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Praj Industries Limited stock attractive at the current price?
The data as of Sep 22, 2026: price ₹312.15, calculated fair value ₹45.77 (−85%), Quality Score 56/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PRAJIND calculated?
We run Praj Industries Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹45.77, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.1 % above its aggregate fair value. Praj Industries Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Praj Industries Limited (PRAJIND)?
The closing price on Sep 21, 2026 was ₹312.15. Our model-based fair value is ₹45.77, about −85% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Praj Industries Limited right now?
The price sits above even our optimistic bull case (₹45.77). The favourable scenario is already priced in. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Praj Industries Limited (PRAJIND) come from?
Earnings per share at Praj Industries Limited grew +11.6 % a year from 2015 to 2026. Broken into its drivers: revenue per share +14.0 %, EBIT margin +7.7 %, tax rate −0.9 %, residual (interest, one-offs) −8.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Praj Industries Limited
How large is the market capitalisation of Praj Industries Limited (PRAJIND)?
The market capitalisation of Praj Industries Limited is ₹66.2B (≈ $688M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Praj Industries Limited (PRAJIND)?
The price-to-sales ratio of Praj Industries Limited is 1.81 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Praj Industries Limited (PRAJIND)?
Earnings per share at Praj Industries Limited are ₹1.30 (price ÷ EPS = P/E 240.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Praj Industries Limited (PRAJIND)?
The dividend yield of Praj Industries Limited is 1.2%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Praj Industries Limited (PRAJIND)?
The net margin of Praj Industries Limited is 0.8% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Praj Industries Limited (PRAJIND)?
The return on equity (ROE) of Praj Industries Limited is 1.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Praj Industries Limited (PRAJIND)?
On an EBIT basis the return on assets of Praj Industries Limited is 16.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Praj Industries Limited (PRAJIND)?
The operating margin of Praj Industries Limited is −0.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Praj Industries Limited (PRAJIND)?
Revenue at Praj Industries Limited is growing −1.8% versus a year earlier (3y avg −3.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Praj Industries Limited (PRAJIND)?
Earnings per share at Praj Industries Limited are growing −70.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Praj Industries Limited (PRAJIND) hold?
Praj Industries Limited holds more cash than debt, ₹307M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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