Praj Industries (BOM:522205) Effective Interest Rate on Debt %: 8.62% (As of Jun. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BOM:522205 Praj Industries Ltd BOM:522205
89 GF Score
Price ₹321.55
GF Value ₹492.54
Valuation Significantly Undervalued
! 5 Warning Signs
View Full Analysis

What is Praj Industries Effective Interest Rate on Debt %?

Praj Industries BOM:522205 -0.89% 89 Effective Interest Rate on Debt % is 8.62% as of Jun. 2026. GuruFocus rates BOM:522205 with a GF Score™ of 89/100 and a GF Value™ of ₹492.54 (Significantly Undervalued). The stock has 5 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Praj Industries's annualized positive value of Interest Expense for the quarter that ended in Jun. 2026 was ₹149 Mil. Praj Industries's average total debt for the quarter that ended in Jun. 2026 was ₹1,730 Mil. Therefore, Praj Industries's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2026 was 8.62%.


Praj Industries  (BOM:522205) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Praj Industries Effective Interest Rate on Debt % Related Terms


Praj Industries Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Praj Industries's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Praj Industries Effective Interest Rate on Debt % Chart

Praj Industries Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.94 14.64 9.26 10.13 11.02

Praj Industries Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.44 9.47 9.57 11.99 8.62

BOM:522205 vs PWR, FIX, EME: Effective Interest Rate on Debt % Comparison

For the Engineering & Construction subindustry, Praj Industries's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Praj Industries Effective Interest Rate on Debt % vs Construction Industry

For the Construction industry and Industrials sector, Praj Industries's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Praj Industries's Effective Interest Rate on Debt % falls into.


BOM:522205
89GF Score
Praj Industries Ltd BOM:522205
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Praj Industries Effective Interest Rate on Debt % Calculation

Praj Industries's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -202.652/( (1948.808+1730.449)/ 2 )
=-1  *  -202.652/1839.6285
=11.02 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1503.112 + 445.696
=1948.808

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1160.682 + 569.767
=1730.449

Praj Industries's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Mar. 2026 )+Total Debt  (Q: Jun. 2026 ))/ count )
=-1  *  -149.228/( (1730.449+0)/ 1 )
=-1  *  -149.228/1730.449
=8.62 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1160.682 + 569.767
=1730.449

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Jun. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 8.62% mean?
Praj Industries (BOM:522205) has a Effective Interest Rate on Debt % of 8.62% as of Jun. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Praj Industries and its competitors.
Is Praj Industries' Effective Interest Rate on Debt % too high?
Praj Industries' current Effective Interest Rate on Debt % is 8.62%. Overall, Praj Industries has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Praj Industries' Effective Interest Rate on Debt % compare to PWR and FIX?
Praj Industries' Effective Interest Rate on Debt % of 8.62% can be compared against companies in the Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Construction company?
A good Effective Interest Rate on Debt % depends on the Construction industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Praj Industries and its competitors. Praj Industries's current Effective Interest Rate on Debt % is 8.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Praj Industries stock overvalued right now?
Based on GuruFocus' analysis, Praj Industries (BOM:522205) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹492.54, compared to a current price of ₹321.55 — trading 34.7% below its estimated fair value. The current Effective Interest Rate on Debt % is 8.62%. Praj Industries' overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Praj Industries (BOM:522205), the current Effective Interest Rate on Debt % is 8.62% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Praj Industries (BOM:522205) Overvalued in 2026?

Based on GuruFocus' analysis, Praj Industries stock appears to be undervalued. The current stock price of ₹321.55 is trading 34.7% below its estimated GF Value™ of ₹492.54. GuruFocus considers Praj Industries to be Significantly Undervalued.

Key valuation signals for BOM:522205:

  • Effective Interest Rate on Debt %: 8.62%
  • GF Value™: ₹492.54 vs. price of ₹321.55 (34.7% below fair value)
  • GF Score™: 89/100 with 5 warning signs

No single metric tells the full story. See the BOM:522205 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Praj Industries Business Description

Other Exchanges PRAJIND:India
Address Bhumkar Chowk-Hinjewadi Road, Praj Tower, S. Number 274 and 275/2, Hinjewadi, Pune, MH, IND, 411057
Praj Industries Ltd is an engineering company based in India. The company operates in a single segment namely Process and Project Engineering. Its business line consists of BioEnergy, High Purity Solutions, Brewery Plants, Wastewater Treatment, Bioproducts, Skid Engineering and Process Solutions, and Critical Process Equipment and Systems.
89GF Score

Get the complete analysis for BOM:522205

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹321.55
Price
₹492.54
GF Value