Prajay Engineers Syndicate Ltd (PRAENG) AI Stock Analysis

• Market Cap: ₹1.60B
• Dividend Yield: N/A
• Average Volume (3M): 15.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.97
• Revenue Growth: -35.09%
• EPS Growth: 34.18%
• Country: IN
• Employees: 70
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.93
• Shares Outstanding: 69,935,790
• 10 Day Avg. Volume: 16,943
• 30 Day Avg. Volume: 15,844
• PEG Ratio: 0.33
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 9.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹21.50 ▼(-18.44% Downside)

The score is primarily held back by weak profitability (negative margins) and a bearish technical setup (price below key moving averages with negative MACD). Some support comes from comparatively better cash flow management and a moderately stable balance sheet, but valuation is not supportive given losses and no dividend data.

Positive Factors

Operating cash flow

Consistent positive operating cash flow provides a durable liquidity source to fund ongoing operations, service debt and support project capex without constant equity raises. Over 2-6 months this reduces refinancing risk and helps manage cyclical real-estate cash needs.

Balance sheet leverage

A stable equity position and reasonable debt-to-equity imply moderate leverage and financial flexibility. Structurally, this lowers immediate refinancing pressure, preserves borrowing optionality and supports continuity of project execution across medium-term real estate cycles.

Free cash flow efficiency

A positive free-cash-flow to net-income ratio indicates the company can convert operations into cash despite accounting losses. This operational cash efficiency supports working capital and selective capex funding, reducing dependence on external capital in the medium term.

Negative Factors

Profitability weakness

Sustained negative net profit, EBIT and EBITDA margins indicate core operations are loss-making, eroding retained earnings and limiting reinvestment. Without structural operational improvement, this will increase reliance on reserves or financing and strain viability over coming months.

Declining revenue

A steep revenue decline reduces scale and operating leverage in a development business that depends on project throughput. Continued top-line contraction diminishes cash inflows, pressures margins and makes it harder to cover fixed costs, hurting liquidity over a 2-6 month horizon.

Asset and equity erosion

Falling shareholders' equity and total assets point to asset write-downs or disposals and weaker collateral. This structural deterioration impairs borrowing capacity, increases funding costs and constrains project finance and growth, raising medium-term execution risk.

Prajay Engineers Syndicate Ltd Business Overview & Revenue Model

Company Description

Prajay Engineers Syndicate Limited, a real estate company, engages in the construction, development, and maintenance of residential, commercial, hospitality, and retail properties in India. It operates through Real Estate, and Hotels and Resorts segments. The Real Estate segment is involved in the development, sale, management, and operation of town ships and housing projects, which includes leasing of self owned commercial premises. The Hotels and Resorts segment maintains hotels, restaurants, and resorts. Prajay Engineers Syndicate Limited was incorporated in 1994 and is based in Hyderabad, India.

How the Company Makes Money

Prajay Engineers Syndicate Ltd generates revenue primarily through its construction and real estate development activities. The company earns income by engaging in large-scale infrastructure projects, including residential complexes, commercial buildings, and industrial facilities. Revenue is derived from project contracts, where PRAENG is compensated for the construction services rendered, often based on fixed-price or cost-plus agreements. Additionally, the company may generate income through the sale of developed properties and land. Key partnerships with government agencies and private developers enhance its project portfolio, providing steady revenue streams. Furthermore, PRAENG's focus on sustainable and innovative construction practices may attract premium pricing for its projects, contributing significantly to its earnings.

Prajay Engineers Syndicate Ltd Financial Statement Overview

Summary

Financials are mixed: weak profitability and inconsistent revenue (Income Statement score 45) weigh heavily, while a relatively stable balance sheet (58) and positive operating cash flow with fluctuating free cash flow (60) provide partial support.

Income Statement

Prajay Engineers Syndicate Ltd has faced significant challenges in maintaining a positive income statement. The company has experienced negative net profit margins over the past years. Revenue growth has been inconsistent, with recent declines. Negative EBIT and EBITDA margins indicate ongoing operational challenges, impacting profitability.

Balance Sheet

The balance sheet reflects a stable equity position with a reasonable debt-to-equity ratio. However, the decrease in stockholders' equity and total assets over time highlights potential concerns about asset management and financial stability. The equity ratio remains moderate, suggesting balanced liabilities and equity.

Cash Flow

Cash flow analysis shows positive operating cash flow, although free cash flow has fluctuated due to capital expenditures. The company has managed to maintain a positive free cash flow to net income ratio, indicating some level of efficiency in cash management despite net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	674.57M	574.55M	574.60M	298.28M	930.50M	383.67M
Gross Profit	-43.51M	-130.60M	-89.39M	83.95M	154.32M	100.63M
EBITDA	-222.53M	-242.38M	-307.37M	-6.40M	70.18M	54.76M
Net Income	-260.05M	-277.01M	-389.52M	-91.31M	-24.65M	-49.76M
Balance Sheet
Total Assets	0.00	8.39B	9.00B	9.43B	11.53B	12.18B
Cash, Cash Equivalents and Short-Term Investments	397.63M	397.63M	357.09M	79.41M	31.33M	31.83M
Total Debt	0.00	1.73B	1.83B	1.73B	1.87B	1.93B
Total Liabilities	-4.84B	3.56B	3.84B	3.86B	5.85B	6.48B
Stockholders Equity	4.84B	4.87B	5.17B	5.56B	5.67B	5.70B
Cash Flow
Free Cash Flow	33.72M	125.48M	202.97M	64.91M	-7.46M	5.92M
Operating Cash Flow	74.92M	188.24M	238.63M	71.47M	47.57M	65.55M
Investing Cash Flow	-40.96M	-62.76M	-33.74M	-5.99M	-54.81M	-59.41M
Financing Cash Flow	9.76M	-84.94M	72.79M	-17.40M	6.75M	-10.27M

Prajay Engineers Syndicate Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRAENG, the sentiment is Negative. The current price of 26.36 is above the 20-day moving average (MA) of 23.24, above the 50-day MA of 26.08, and above the 200-day MA of 24.34, indicating a bearish trend. The MACD of -1.04 indicates Negative momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 54.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PRAENG.

Prajay Engineers Syndicate Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CORALFINAC	69 Neutral	₹1.44B	10.83	―	1.00%	―	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RUCHINFRA	60 Neutral	₹1.41B	14.29	―	―	-3.62%	459.63%
LANCORHOL	56 Neutral	₹2.02B	-45.35	―	0.80%	4.65%	-137.16%
VIPULLTD	50 Neutral	₹1.55B	-6.11	―	―	-81.06%	-108.05%
PRAENG	48 Neutral	₹1.60B	-5.98	―	―	-35.09%	34.18%
HDIL	44 Neutral	₹1.13B	―	―	―	―	―