The going may be tough for Pune-based engineering firm Praj Industries, but there are indications that the the worst is over. For a company which has been shunned by investors for the past six years and lost 85% of its value from the peak -- Praj Industries may be regaining investor interest going by the expansion of the order book to 1,010 crore in the quarter to June — 56% of which is from overseas. Similarly, the recent spike in oil prices and the depreciation in the rupee also bode well for the firm. The company is debt-free with over 200 crore or one-third of its market value held in cash. During the past couple of years it has also diversified into new businesses such as water treatment, which today contribute nearly 30% to its total revenues. Its low valuations have driven dividend yield above 4.5%. Praj has begun construction of Asia’s first second generation ethanol plant which, if successful in attracting investors, will be a key growth trigger.
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