Praj Industries Ltd. share price forecast

The company's key growth levers remain strong & therefore we maintain our BUY rating with an unchanged Target Price of Rs 477 valuing the company at 22xFY24 EPS.

We maintain our BUY with a revised target price of Rs 477 (from Rs 472 earlier) valuing the company at 39x (~30% discount to TTM PE of 55x) FY23 EPS, implying an upside of 19% from the CMP 400.

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.

We initiate coverage on the stock with a BUY rating and value the company at 40x FY23E PE to arrive at a target price of Rs 422/share, implying an upside of 22% from the CMP.

Margin fall was mainly on change in revenue mix towards the domestic business. Key highlights: Revenue remained flat, 10% lower than estimates as export declined by 41% yoy to Rs 433mn. Ethanol revenue grew marginally by 2.5%yoy to 1.2bn while emerging business reported growth of 16.5%yoy to Rs 531mn. Lower execution in brewery by 36%yoy to Rs 216mn.Order inflow up 73% yoy to Rs 2.8bn (ethanol 51%, brewery 18%, and emerging 31%), order book up 7.3% qoq to Rs 10.3bn.Praj usually has a seasonally weak 1H and report 80-85% profits in 2H;therefore, strong order inflow in 1Q is positive. Orders in emerging business accounted for 31% of total; we expect traction in these. Adjusted profit...

Praj is a global process solutions company driven by innovation and integration capabilities, offers solutions to add significant value to bioethanol facilities, brewery plants, water & wastewater treatment systems, critical process equipment & systems, HiPurity solutions and bio-products. Over the past 3 decades, Praj has focused on environment, energy and agri process led applications. Praj has been a trusted partner for process engineering, plant & critical equipment and systems with over 600 references across five continents. Solutions...

Lower traction in emerging business. Increase in working capital mainly receivables. Decline in order inflow in ethanol business. Expect recovery in coming quarter. Focus on execution and greater operational efficiency led to margin improvement....

Strong execution pick up, both in export and domestic. Emerging businesses grew by 28% accounting for 29% of revenue. Order inflow and order backlog remained healthy; export orders for emerging...

Margin decline at consolidated level with negative operating leverage. Acquired remaining 20% stake in Hi-Purity, now owns 100%. Key highlights: Export fell 29% and emerging business revenues by 28% yoy. Brewery...

Praj 1QFY16 result was lower than estimates because of lower execution in emerging businesses. However, gross margin improved by 1,280 bps to 42% while EBITDA margins increased by 180bps with an improvement in operational performance and favorable...

and detailed interaction with the management has further strengthened our conviction. R&D; work on secondgeneration ethanol and bioproduct development is at a critical stageandwillcreatenewopportunitiesoverthemediumterm.Thefocusonnonethanol...