Result Update: Praj Industries- Reduce - TP Rs.81 - Kotak

Praj reported weak fourth quarter performance (largely expected), which missed our estimates on revenue and profit front.

The management indicated that the business outlook is weak in the near-term, though it is positive on the medium term on back of investment in refineries, fuel upgradation, specialty chemicals and 2G ethanol.

The stock is trading at 25.7x and 19.2x, based on FY18 and FY19 earnings respectively, which in our view is fair given the stock's weak earnings and business outlook.

Further, we note that there is reasonable chance of the company missing on our projected earnings. Given this, we continue to maintain our cautious stance on the company and maintain "Reduce".

Shares of PRAJ INDUSTRIES LTD. was last trading in BSE at Rs.79.95 as compared to the previous close of Rs. 77.35. The total number of shares traded during the day was 98898 in over 911 trades.

The stock hit an intraday high of Rs. 80.6 and intraday low of 77.15. The net turnover during the day was Rs. 7822230.

Source : Equity Bulls

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