Praj Industries shareholders counting losses this year, recovery in offing?

Shares of Praj Industries are in a downtrend this year. The industrial products stock has crashed 55% from its record high this year. The multibagger hit a peak of Rs 874.30 on January 1, 2025. Praj Industries shareholders have incurred losses in duration under three years. However, the stock has clocked 493% returns in five years and logged 382% returns in ten years.

The stock was trading on a flat note in the current session at Rs 391.80 on BSE. Market cap of the firm stood at Rs 7,202 crore. The industrial products stock hit a 52-week low of Rs 388.10, falling nearly 2% in the previous session. 

Kunal Kamble, Sr. Technical Research Analyst at Bonanza Portfolio looks bearish on the outlook of the stock. 

"Praj Industries continues to trade under pressure as the stock is making a Lower High and Lower Low formation, confirming a negative trend. From its all-time high, the stock has already corrected by nearly 55%. Recently, it broke below the key support level of Rs 441, opening the door for a further downside move towards Rs 368.  Price action remains weak as the stock is trading below all major EMAs, while the RSI is positioned in the lower range, supporting the bearish outlook, said Kamble. 

"The overall setup suggests that the trend remains negative with scope for a decline towards Rs 368. It is better to avoid fresh buying at current levels, and the bearish view would be negated only if the stock manages to sustain above Rs 441," added Kamble. 

A R Ramachandran, SEBI registered Independent analyst says, "Praj Industries stock price is bullish on the Daily charts with strong support at Rs 390. A Daily close above resistance of Rs 405 could lead to a target of Rs 445 in the near term."

Centrum Broking is bullish on the industrial goods stock with a price target of Rs 460. 

"We remain positive on Praj’s long-term prospects given its market leadership, tech edge, pure-play bioenergy exposure, and expanding ethanol applications. Given near-term headwinds, we prefer to stay cautious and retain an ADD rating (TP Rs 460)," said Centrum Broking.

"Management is pivoting from ETCA to conventional sectors (chemicals, fertilizers, oil & gas), leveraging upgraded capacity to serve larger modules. Clarity on US 45Z tax credits supports LCE/Biofuel projects, while Latin America orders provide near-term visibility. The services business is gaining traction across domestic and international markets, driven by performance enhancers, ensuring steady recurring revenues," added the brokerage. 

Praj Industries specialises in process and project engineering, offering design and engineering services. The company provides solutions across various sectors, including biofuels, biomaterials, energy transition and climate action, critical process equipment and modularization, high-purity water systems, brewery and beverages, and zero liquid discharge systems.