Rs 75 to Rs 475: This stock turned into a multibagger in three years; hit record high last week

Shares of Praj Industries Ltd have turned into multibagger in the last three years. The stock, which closed at Rs 74.9 on August 28, 2020 closed at Rs 475.60 on BSE on August 28, 2023, delivering 535% returns in three years. During the period of two years and one year, the stock climbed 40.7% and 22%, respectively. In comparison, Sensex has zoomed 64.68% in three years. The biotechnology stock hit a yearly low of Rs 299 on March 28, 2023 and a record high of Rs 514 on August 22, 2023.

ALSO READ: Rs 75 to Rs 475: This stock turned into a multibagger in three years; hit record high last week

In the last session, Praj Industries shares ended 1.25% higher at Rs 475.60 against the previous close of Rs 469.75 on BSE. Total 1.04 lakh shares of the firm changed hands amounting to a turnover of Rs 4.97 crore on BSE. Market cap of the firm climbed to Rs 8737.39 crore.

In terms of technicals, the relative strength index (RSI) of the Praj Industries stock stands at 58.6, signaling it's trading neither in the overbought not in the oversold zone. Praj Industries shares have a beta of 0.7, indicating very low volatility in a year. Praj Industries shares are trading higher than the 20 day, 50 day, 100 day, 150 day, 200 day but lower than the 5 day and 10 day moving averages.

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The firm reported a profit of Rs 58.7 crore in the June 2023 quarter compared to Rs 41.3 crore profit in the corresponding period last year. Revenue from operations climbed to Rs 748.8 crore in the first quarter of current fiscal compared to Rs 735.4 crore in the year-ago period. Operating profit climbed to Rs 75.5 crore in Q1 against Rs 55.9 crore in the June quarter of the last fiscal.

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Here’s a look at the outlook of the stock.

Abhijeet from Tips2trades said, “Praj Industries is bearish on the Daily charts with strong resistance at 505. A daily close below support of 458 could lead to targets of 429-382 in the near term.”

Axis Securities has maintained its buy rating with a target price of Rs 500.

“Domestic business augurs well as Ethnaol Blending continues with strong traction in FY23 and mostly like pre-poning its target, the overall demand-supply gap of Ethanol, increased interest in grain[1]based distilleries and decarbonisation impetus is auguring well for Praj along with development in other key verticals such as CPS, ZLD & High Purity gaining traction. Praj is a key beneficiary of multiple tailwinds provided by the bio-economic revolution, giving strong growth & revenue visibility for the next 3-5 years. The company's is the pure equity play on global decarbonisation theme & therefore we maintain our BUY rating with a target price of Rs 500 valuing the company at 25x FY25E,” said Axis Securities.

Praj Industries Limited is a biotechnology company. The company’s business lines include BioEnergy, Praj HiPurity Systems (PHS), Critical Process Equipment & Skids (CPES), Wastewater Treatment, and Brewery & Beverages.