Praj Industries Intrinsic Value

PRAJIND • Capital Goods
Current Stock Price
₹318.05
Primary Intrinsic Value
₹95.42
Market Cap
₹1177 Cr
-40.9% Downside
Median Value
₹187.88
Value Range
₹95 - ₹636
Assessment
Trading Above Calculated Value
Safety Margin
-69.3%

PRAJIND Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹95.42 ₹76.34 - ₹114.50 -70.0% EPS: ₹4.20, Sector P/E: 12x
Book Value Method asset ₹373.51 ₹336.16 - ₹410.86 +17.4% Book Value/Share: ₹373.51, P/B: 1.0x
Revenue Multiple Method revenue ₹636.10 ₹572.49 - ₹699.71 +100.0% Revenue/Share: ₹915.68, P/S: 0.8x
EBITDA Multiple Method earnings ₹395.68 ₹356.11 - ₹435.25 +24.4% EBITDA: ₹244.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹127.22 ₹101.78 - ₹152.66 -60.0% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹95.42 ₹85.88 - ₹104.96 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹95.42 ₹85.88 - ₹104.96 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹205.41 ₹184.87 - ₹225.95 -35.4% ROE: 5.5%, P/E Multiple: 10x
Graham Defensive Method conservative ₹187.88 ₹169.09 - ₹206.67 -40.9% EPS: ₹4.20, BVPS: ₹373.51
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

PRAJIND Intrinsic Value Analysis

What is the intrinsic value of PRAJIND?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Praj Industries (PRAJIND) is ₹187.88 (median value). With the current market price of ₹318.05, this represents a -40.9% variance from our estimated fair value.

The valuation range spans from ₹95.42 to ₹636.10, indicating ₹95.42 - ₹636.10.

Is PRAJIND undervalued or overvalued?

Based on our multi-method analysis, Praj Industries (PRAJIND) appears to be trading above calculated value by approximately 40.9%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 13.97 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 5.5% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 7.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 1.07x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹43 Cr ₹43 Cr Positive Free Cash Flow 8/10
March 2024 ₹199 Cr ₹196 Cr Positive Free Cash Flow 8/10
March 2023 ₹162 Cr ₹123 Cr Positive Free Cash Flow 8/10
March 2022 ₹175 Cr ₹113 Cr Positive Free Cash Flow 8/10
March 2021 ₹225 Cr ₹143 Cr Positive Free Cash Flow 8/10