Tuesday, December 8, 2009

PRAJ INDUSTRIES: GOOD BUT NOT A VALUE BUYING


What’s your opinion and how do you value the Praj industries stock in the long term? ask by shri jignesh shah
1.praj industries is a Construction & Engineering company.
2.Promoters holding in praj industries are 22.91 percent and FII hold 8.73 percent mutual funs hold 11 percent so this situation is good such type share lead in both situation (market fall and rally) means high beta stocks.
3. Rakesh Jhunjhunwala hold 11,678,624 share of praj industries company as per information on BSE site and Rekha Jhunjhunwala hold 4,048,000 share in praj industries so this is a good sign for investing in this company because mr. jhunjhunwala known as Indian warren buffet.
4. Debt/equity ratio in praj industries (PRAJ INDUSTRIES) is 0.03 means LOW debt company.
5.Face value of praj industries is rs 2 and this share belong to BSE group A shares.
6.but share is not a value buying because book value of PRAJ INDUSTRIES share is 24.05 so current price is 4 time high compare to book value.
7.P/E of praj industries is 12.54
8.overall I think company is good for long term investment but due to 4 time price/book value ratio it is better to wait for a entry in range of 40-60.
This analysis is my view only not a professional advice read disclaimer before take any action.
Pending analysis (share queries in queue to publish this blog):-
Deccan gold mines. How to trade in option (call or put), information about various index like benkex etc., difference between small cap, mid cap or large cap, alok textile, jp hydro power, first source solution.
Want to add your share in queue for analysis? - mail your complete question to
mckaushik00@yahoo.co.in we also welcome your suggestion about increase quality of this blog.

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