PRAJ INDUSTRIES LTD Valuation

PRAJIND · Capital Goods · Current price ₹340.75

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DocStoX fair value
₹116
low confidence
Current price
₹341
Upside
-66.0%
P/E ratio
262.1x
P/B ratio
5.1x
Verdict
Avoid
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Is PRAJ INDUSTRIES LTD undervalued?

DocStoX estimates the fair value of PRAJ INDUSTRIES LTD at ₹116 per share, versus the current market price of ₹341. That puts the stock about -66.0% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 4 independent methods: Residual income (₹62), Relative P/E (₹76), Graham floor (₹46), Analyst target (₹355). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹46 (bear) to ₹116 (base) to ₹355 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

PRAJ INDUSTRIES LTD trades at a P/E of 262.1x and a P/B of 5.1x, with a dividend yield of 1.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on PRAJ INDUSTRIES LTD

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.