Review

PRAJ INDUSTRIES 

Ticker : 522205 
FV: Rs2 
52-Week H/L: Rs168/93.45 

We had recommended Praj Industries in volume no. 35, issue no. 27 (dated April 29, 2019), when the scrip was trading at Rs. 143. The company is involved in the business of process and project engineering. Its business lines include ethanol plants, brewery plants, water and wastewater, process equipment and systems, high purity systems, bio-products and also customised research services and solutions (CRSS). We had previously recommended the scrip based on increase in order inflow and government’s focus on augmenting the blending of ethanol. On a consolidated financial front, Praj Industries' revenue has grown by 17.17 per cent to Rs. 294.14 crores in Q2FY20 as against Rs. 251.03 crores posted in Q2FY19. For Q2FY20, PBDT stood at Rs.22.91 crores, up by 21.80 per cent from Rs. 18.81 crores in Q2FY19. The net profit grew substantially by 80.43 per cent in Q2FY20 to Rs 16.13 crores from Rs 8.94 crores in Q1FY19. The company has reported a robust Q2FY20 performance. Hence, we recommend a HOLD.