Praj Industries is Pioneer in Ethanol Technology solutions that offers cutting-edge technologies to the distillery industry. It is a leading biofuel Technology Company providing a number of processes and systems for ethanol and biodiesel production. It has a presence on five continents.
The company has over 70% of the market share in India for 2G ethanol technology and experience in installing projects in Africa and Southeast Asia and contributes ~10% of global ethanol production(Excluding China).
It is a Small-cap company with a market capitalization of Rs 6,948 crore. The company’s shares were trading at Rs 378.40 apiece on June 30.
In the last three years, the company shares have grown exponentially from Rs 67.35 apiece to Rs 376.70, delivering a multibagger return of 490 percent.
Recently, Praj has collaborated with AirAsia India to operate the first commercial aircraft in India to blend indigenous sustainable aviation fuel.
Praj Industries has received preliminary clearance to form a joint venture company (JVC) with Indian Oil Corporation (IOCL), with a 50:50 control share. This JVC will establish facilities for the production of biofuels as well as the selling of CBG, ethanol, SAF, and other byproducts and intermediates.
According to CNBC-TV18. Praj Industries increased its market share in domestic ethanol plants from 60 percent to 66 percent.
The company has continuously maintained an impressive order book with constant order inflows across quarters. The order book as of March 31, 2023, was Rs. 34,140 million (the order backlog as of FY22 was Rs. 28,780 million).
According to financials, operating revenues increased by 51 percent from Rs 2,333 crore in FY 21-22 to Rs 3,528 crore in FY 22-23, while net profit increased by 59 percent from Rs 150 crore to Rs 239 crore over the same period.
The profitability ratios for FY23 were 22.24 percent ROE and 28.91 percent ROCE.
According to the shareholding pattern, the company’s promoters hold a 32.82 percent stake, FIIs own 17.83 percent, and retail investors own 41.5 percent.
Written by Omkar Chitnis
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