Praj Industries (PRJ IN) – Q2FY26 Result Update – Softer Q2 execution; GenX pain persist – HOLD
Published on 06 Nov 2025
Praj’s near-term prospects remain weak amid the continuing tariff related uncertainties, liquidity challenges in the domestic market and lack of visibility for greenfield 1G ethanol opportunities. However, its long-term growth may be aided by the prospective mandates for ethanol blending in petrol to 25%-30% and blending in diesel, along with co-product development opportunities with existing ethanol plants. The stock is trading at a P/E of 27.5x/22.3x on FY27/28E earnings. We roll forward to Sep’27E and maintain our ‘Hold’ rating valuing the stock at a PE of 26x Sep’27E (29x Mar’27E earlier) arriving at a revised TP of Rs353 (Rs393 earlier).
