Prabhudas Lilladher has issued an 'Accumulate' rating on Praj Industries with a target price of ₹340 in its research report dated March 24, 2026. According to the broker's report, the stock is currently trading at a P/E ratio of 28.2x/21.0x on FY27/28E estimates. The target price is based on a P/E multiple of 26x on September 2027 estimates, which remains unchanged from previous assessments.
During recent management interactions at a conference, the leadership of Praj Industries expressed optimism about FY27 being a recovery year. As reported by Prabhudas Lilladher, the management expects this improvement to be driven by improved order inflows and better utilization of the GenX facility. The GenX facility is projected to achieve break-even at revenue of ₹4-5 billion, despite facing elevated fixed costs.
The 1G ethanol business is undergoing a structural shift from greenfield to brownfield opportunities and services-led revenue models, according to the broker's report. The Compressed Biogas (CBG) segment maintains a healthy pipeline valued at ₹10 billion, though execution remains constrained by feedstock and offtake challenges. Recent policy support for CBG blending into gas pipelines is expected to improve long-term visibility for this segment.
The company is emerging as a key global opportunity in SAF (Sustainable Aviation Fuel) with focus on high-value engineering mandates, while Iso-butanol remains an emerging alternative fuel option. The services segment is gaining traction as a stable, annuity-like revenue stream, as noted in Prabhudas Lilladher's analysis of the company's diversified business portfolio.
