Prakash Industries Limited (PRAKASH) AI Stock Analysis

• Market Cap: ₹30.43B
• Dividend Yield: 0.87%
• Average Volume (3M): 52.74K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.26
• Revenue Growth: 1.39%
• EPS Growth: 2.04%
• Country: IN
• Employees: 2,427
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 5.10
• Shares Outstanding: 179,081,830
• 10 Day Avg. Volume: 60,628
• 30 Day Avg. Volume: 52,743
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹179.00
• Price Target Upside: 5.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ₹179.00 ▲(5.36% Upside)

Prakash Industries Limited shows a strong financial performance with solid revenue growth and profitability, although cash flow challenges need addressing. The stock's valuation is attractive with a low P/E ratio, indicating potential undervaluation. Technical indicators suggest a neutral trend, with no clear momentum direction. Overall, the stock presents a balanced risk-reward profile with opportunities for growth, contingent on resolving cash flow issues.

Prakash Industries Limited Business Overview & Revenue Model

Company Description

Prakash Industries Limited operates as an integrated steel and power company in India. The company produces sponge iron; steel billets and blooms; ferro alloys; wire rods and HB wire products for use in binding wires, GL wires, fencing barbed wires, armored sealed wires for heavy electrical cables, nut bolts, nails, screws, alpine products, wire ropes, wire mesh products, etc.; and TMT bars for construction and infrastructure projects. It also engages in the generation of wind power with an installed capacity of 25 MW. The company was incorporated in 1980 and is based in New Delhi, India.

How the Company Makes Money

Prakash Industries Limited generates revenue through multiple streams primarily centered around its steel manufacturing and power generation operations. The company earns income by producing and selling various steel products, including sponge iron, billets, and steel bars, which are essential raw materials for construction and industrial applications. The power generated from its captive power plants not only supports its steel operations but also contributes to revenue through the sale of surplus power to the grid. Prakash Industries also benefits from the production and sale of ferro alloys, enhancing its product portfolio. Strategic partnerships and operational efficiencies further bolster the company's financial performance, enabling it to maintain competitive pricing and expand its market share.

Prakash Industries Limited Financial Statement Overview

Summary

Prakash Industries Limited demonstrates solid revenue growth and profitability with effective equity utilization and stable financial leverage. However, the cash flow statement highlights concerns, particularly in free cash flow generation and cash conversion efficiency, which could impact liquidity and future investment capacity.

Income Statement

The company shows a strong gross profit margin of 29.3% and a consistent net profit margin of 8.9% in 2025. Revenue has grown at a healthy rate of 9.1% from 2024 to 2025, indicating a positive growth trajectory. However, the EBIT margin is relatively moderate at 9.4%, suggesting potential room for operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio of 0.13 in 2025 indicates low financial leverage, which is generally positive for stability. The return on equity (ROE) is strong at 10.7%, reflecting effective use of equity in generating profits. The equity ratio is high at 74.0%, indicating a solid financial structure. Despite these strengths, the company's growth in stockholders' equity has been moderate, which could limit future expansion.

Cash Flow

The free cash flow has significantly decreased, with a negative growth rate, highlighting challenges in cash generation. The operating cash flow to net income ratio is low at 0.40, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is negative, pointing to potential issues in maintaining positive cash flow after capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.14B	40.14B	36.78B	34.44B	39.29B	32.16B
Gross Profit	11.78B	11.78B	9.90B	8.33B	8.61B	8.35B
EBITDA	5.45B	5.45B	5.51B	4.15B	3.97B	3.25B
Net Income	3.55B	3.55B	3.48B	1.90B	1.69B	953.30M
Balance Sheet
Total Assets	44.85B	44.85B	40.59B	42.51B	39.12B	38.84B
Cash, Cash Equivalents and Short-Term Investments	2.76B	2.76B	2.76B	2.98B	189.80M	446.10M
Total Debt	4.23B	4.23B	3.62B	5.99B	5.48B	5.57B
Total Liabilities	11.66B	11.66B	10.35B	12.97B	11.00B	9.85B
Stockholders Equity	33.19B	33.19B	30.24B	29.54B	28.12B	28.99B
Cash Flow
Free Cash Flow	0.00	-327.70M	1.38B	1.27B	2.10B	249.40M
Operating Cash Flow	0.00	1.42B	6.01B	5.85B	3.50B	1.59B
Investing Cash Flow	0.00	-1.26B	-3.20B	-5.45B	-2.99B	-1.29B
Financing Cash Flow	0.00	21.20M	-2.88B	-379.10M	-592.60M	-433.60M

Prakash Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRAKASH, the sentiment is Positive. The current price of 169.9 is above the 20-day moving average (MA) of 163.99, above the 50-day MA of 167.27, and above the 200-day MA of 162.10, indicating a bullish trend. The MACD of 1.74 indicates Negative momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 54.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PRAKASH.

Prakash Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSL	73 Outperform	₹34.14B	12.85	13.55%	1.28%	2.03%	10.83%
MAITHANALL	72 Outperform	₹32.40B	4.56	16.82%	1.44%	21.34%	-4.84%
VSSL	68 Neutral	₹25.89B	25.20	11.67%	1.12%	6.99%	-12.58%
PRAKASH	67 Neutral	₹30.43B	8.70	―	0.87%	1.39%	2.04%
SUNFLAG	61 Neutral	₹46.39B	23.57	1.85%	0.29%	3.63%	35.18%
MOL	49 Neutral	₹20.56B	-23.29	-0.70%	―	―	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%