Praj Industries Ltd.'s share price slumped to the lowest level in two years as the company reported disappointing results for April–June period. Its topline, operating profit, and net profit all declined.
Praj Industries' consolidated net profit plunged 94% on the year to Rs 5.30 crore. Its revenue fell 8.4% to Rs 640 crore during April–June from Rs 699 crore. Its Ebitda declined 59% to Rs 35.30 crore during first quarter from Rs 84 crore.
Praj Industries reported that its profit margin declined 690 basis points to 5.5% in April–June from 12.4% in the corresponding period of previous financial year.
A fall in domestic ethanol business and delayed execution and liquidity crunch at the customer level weighed on performance. Execution of couple of high-value engineering orders at Kandla led to labour and infrastructure expenses, the company said in investors' presentation.
Praj Industries share price slumped 8.76% to Rs 406.40 apiece, the lowest level since July 27, 2023. It was trading 6.85% lower at Rs 414 apiece as of 11:02 a.m., as compared to 0.02% decline in the NSE Nifty 50 index.
The stock declined 41.28% in 12 months, and 49.32% on year-to-date basis. Total traded volume so far in the day stood at 19 times its 30-day average. The relative strength index was at 15, which implied the stock is oversold.
Out of nine analysts tracking the company, eight maintain a 'buy' rating, and one suggests to 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 32.7%.
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