Prakash Industries Limited (PRAKASH) AI Stock Analysis

• Market Cap: ₹29.92B
• Dividend Yield: 1.12%
• Average Volume (3M): 49.93K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.08
• Revenue Growth: -12.15%
• EPS Growth: -6.47%
• Country: IN
• Employees: 2,427
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 3.44
• Shares Outstanding: 179,081,830
• 10 Day Avg. Volume: 40,074
• 30 Day Avg. Volume: 49,933
• PEG Ratio: 3.70
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -88.80
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹138.00 ▲(2.72% Upside)

The overall stock score is primarily influenced by solid financial performance and attractive valuation. However, significant bearish technical indicators suggest caution. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for Prakash Industries' products, supporting long-term business expansion and stability.

Low Financial Leverage

Low financial leverage enhances financial stability and reduces risk, providing Prakash Industries with flexibility to invest in growth opportunities.

Profitability

High profitability margins reflect efficient cost management and competitive pricing, supporting sustainable earnings and reinvestment capacity.

Negative Factors

Cash Flow Challenges

Decreasing free cash flow may limit Prakash Industries' ability to fund operations and growth initiatives, potentially impacting long-term financial health.

Cash Conversion Efficiency

Low cash conversion efficiency suggests challenges in turning profits into cash, which could affect liquidity and operational flexibility.

Moderate EBIT Margin

A moderate EBIT margin indicates potential room for operational efficiency improvements, which could enhance profitability and competitive positioning.

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 generates revenue through multiple key streams, primarily from the sale of steel products like TMT bars and billets, which cater to the construction and infrastructure industries. Additionally, the company benefits from its iron ore mining operations, providing raw materials that are essential for steel production, thus reducing costs and increasing profitability. Power generation from its captive power plants also contributes to revenue by supplying energy for its manufacturing processes and potentially selling excess energy to the grid. Strategic partnerships with construction firms and suppliers enhance its market reach and stability, further solidifying its revenue base.

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, cash flow challenges, particularly in free cash flow generation and cash conversion efficiency, 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	38.85B	40.14B	36.78B	34.44B	39.29B	32.16B
Gross Profit	12.47B	11.78B	9.90B	8.33B	8.61B	8.35B
EBITDA	5.51B	5.45B	5.51B	4.15B	3.97B	3.25B
Net Income	3.56B	3.55B	3.48B	1.90B	1.69B	953.30M
Balance Sheet
Total Assets	0.00	44.85B	40.59B	42.51B	39.12B	38.84B
Cash, Cash Equivalents and Short-Term Investments	2.71B	2.76B	2.76B	2.98B	189.80M	446.10M
Total Debt	0.00	4.23B	3.62B	5.99B	5.48B	5.57B
Total Liabilities	-33.19B	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: Negative
• Last Price: 134.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRAKASH, the sentiment is Negative. The current price of 134.35 is below the 20-day moving average (MA) of 143.85, below the 50-day MA of 155.98, and below the 200-day MA of 160.96, indicating a bearish trend. The MACD of -6.78 indicates Positive momentum. The RSI at 29.90 is Positive, neither overbought nor oversold. The STOCH value of 34.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	76 Outperform	₹37.16B	14.24	―	1.32%	-0.46%	4.85%
VSSL	75 Outperform	₹28.50B	26.61	―	1.07%	-1.47%	-15.20%
MAITHANALL	68 Neutral	₹32.02B	4.51	―	1.68%	21.44%	-46.24%
SUNFLAG	62 Neutral	₹47.73B	24.26	―	0.30%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PRAKASH	60 Neutral	₹29.92B	8.39	―	1.12%	-12.15%	-6.47%
MOL	45 Neutral	₹17.46B	44.02	―	―	―	―

Prakash Industries Limited Corporate Events

Prakash Industries Secures SEBI Compliance Certification for Q2 2025

Prakash Industries Limited has announced the receipt of a compliance certificate from Skyline Financial Services Pvt. Ltd., confirming adherence to Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. This certification ensures that the company’s securities have been properly listed and that physical share certificates have been dematerialized, reflecting the company’s commitment to regulatory compliance and operational transparency.