Praj IndustriesBOM:522205 -0.74%92 Quick Ratio is 1.30 as of Mar. 2026, which is 8% below its 10-year median of 1.41. GuruFocus rates BOM:522205 with a GF Score™ of 92/100 and a GF Value™ of ₹491.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,780 Construction companies, Praj Industries ranks better than 51.18% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Praj Industries's quick ratio for the quarter that ended in Mar. 2026 was 1.30.
Praj Industries has a quick ratio of 1.30. It generally indicates good short-term financial strength.
The historical rank and industry rank for Praj Industries's Quick Ratio or its related term are showing as below:
BOM:522205'
s Quick Ratio Range Over the Past 10 Years
Min: 1.18 Med: 1.41 Max: 1.82
Current: 1.3
During the past 13 years, Praj Industries's highest Quick Ratio was 1.82. The lowest was 1.18. And the median was 1.41.
BOM:522205's Quick Ratio is ranked better than 51.18% of 1780
companies
in the Construction industry
Industry Median: 1.29
vs BOM:522205: 1.30
Praj Industries (BOM:522205) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Praj Industries Quick Ratio Related Terms
Praj Industries Quick Ratio Historical Data
* Premium members only.
The historical data trend for Praj Industries's Quick Ratio 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.
BOM:522205 vs PWR, FIX, EME: Quick Ratio Comparison
For the Engineering & Construction subindustry, Praj Industries's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio vs Construction Industry
For the Construction industry and Industrials sector, Praj Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Praj Industries's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Praj Industries's Quick Ratio for the fiscal year that ended in Mar. 2026 is calculated as
* 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 (BOM:522205) has a Quick Ratio of 1.30 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Praj Industries and its competitors. This is near median its historical median of 1.41. Over the past decade, Praj Industries' Quick Ratio has ranged from 1.18 to 1.82. According to the industry distribution chart, Praj Industries ranks #869 out of 1780 companies in the Construction industry, placing it in the top 48.8%.
Is Praj Industries' Quick Ratio too high?
Praj Industries' current Quick Ratio of 1.30 is near median its 10-year median of 1.41. Over the past 10 years, this metric has ranged from a low of 1.18 to a high of 1.82. The Construction industry median Quick Ratio is 1.29. Praj Industries' value of 1.30 is 0.8% above this industry median. Based on the distribution chart, Praj Industries ranks #869 out of 1780 companies in the Construction industry, which is above the industry midpoint. Overall, Praj Industries has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Praj Industries' Quick Ratio compare to PWR and FIX?
According to the Construction industry distribution chart, Praj Industries ranks #869 out of 1780 companies for Quick Ratio. This puts Praj Industries in the upper half of its industry. The industry median Quick Ratio is 1.29. Praj Industries' value of 1.30 is 0.8% above this benchmark. Historically, Praj Industries' own Quick Ratio has ranged from 1.18 to 1.82 over the past decade. While the company's 10-year median is 1.41 vs. the industry median of 1.29, Praj Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Construction company?
The median Quick Ratio among Construction companies is 1.29, based on 1,780 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Praj Industries's current Quick Ratio of 1.30 is 0.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Praj Industries and its competitors. For the Construction industry, the median Quick Ratio is 1.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Praj Industries's current Quick Ratio is 1.30, which is near median its own 10-year median of 1.41. 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 Modestly Undervalued. The stock's GF Value™ is ₹491.75, compared to a current price of ₹359.80 — trading 26.8% below its estimated fair value. The current Quick Ratio is 1.30, which is near median its 10-year median of 1.41 and 0.8% above the Construction industry median of 1.29. Praj Industries' overall GF Score™ is 92/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Praj Industries (BOM:522205), the current Quick Ratio is 1.30 as of Mar. 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 ₹359.80 is trading 26.8% below its estimated GF Value™ of ₹491.75.
GuruFocus considers Praj Industries to be Modestly Undervalued.
Key valuation signals for BOM:522205:
Quick Ratio: 1.30 (near median its 10-year median of 1.41)
GF Value™: ₹491.75 vs. price of ₹359.80 (26.8% below fair value)
Industry Position: 0.8% above the Construction median (#869 of 1780)
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 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.
92GF Score
Get the complete analysis for BOM:522205
Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:522205 has been successfully added to your 
