Shares of multibagger Praj Industries hit a 52-week low today despite a rally in the broader market. The industrial products stock hit a 52-week low of Rs 388.10, falling nearly 2% in the afternoon session.
Later, the stock closed 1.61% lower at Rs 390.45 on BSE. Market cap of Praj Industries slipped to Rs 7,177 crore.
The RSI of the stock stands at 35, signalling the stock is trading neither in the oversold zone nor in the overbought zone. However, the stock is trading below all short term and long term simple moving averages.
The multibagger stock has clocked 507% returns in five years and 372% returns in ten years. However, Praj Industries shareholdes have incurred losses in duration under three years.
Jigar S Patel from Anand Rathi said, “Support will be at Rs 365 and resistance at Rs 415. A decisive move above the Rs 415 level may trigger a further upside of Rs 430. The expected trading range will be between Rs 365 and Rs 430 for the short-term.”
Centrum Broking has a price target of Rs 460 on the industrial goods stock.
“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.
However, Axis Securities has a ‘sell’ call on the stock. It fixed a price target of Rs 350 in mid August this year.
The brokerage on August 13 noted that order inflows for the company moderated to Rs 795 crore in the June quarter against Rs 1,032 crore in the preceding quarter, with all three business segments reporting sequential declines.
“While the management has expressed confidence in regaining the momentum, the timing and pace of such recovery remain uncertain. The company is, however, seeing strong traction in the CBG and services businesses, and a healthy enquiry pipeline for biogenic CO2 capture solutions,” said Axis Securities.