Target – 280 Stop Loss 170
Praj Industry
Industry - Engineering – Heavy
BSE Code - 522205 NSE Symbol - PRAJIND
52week H/L – Rs. 273/100 Face value – Rs. 2
ISIN - INE074A01025 Equity - 36.63 crs
PE – 22.55 Book Value – 19.15 P/B – 9.87
Business Profile
Praj Industries was established in 1984 for providing solutions to the distillery industry. Currently, the company is engaged in the engineering and manufacture of alcohol plants, fuel ethanol plants, brewery plants, wastewater systems and fermentation systems. It has technical collaborations with Dab Brav Consult Gmbh, Germany and Vogellbusch Gmbh, Austria. The company is currently operating in Asia, Africa and South America. Its R&D centre, Matrix, has developed several patented technologies for the company.
The alcohol plants of the company deliver industrial, potable and fuel grade ethanol. They produce alcohol from various raw materials like sugar, starch and multiple feedstocks. The company manufactures flexible plants wherein the same equipment can deliver different grades of spirits for different applications. The company has a market share of 60% in ethanol plant and equipment manufacture. The company also provides turnkey solutions, technical support and engineering services to the brewery industry for activities from malt reception to packaging. It manufactures mash vessels, wort boilers, fermentation systems, filtration systems, yeast drying systems, heat recovery systems and cleaning in place (CIP) systems for breweries. The company is also engaged in the engineering and manufacture of wastewater treatment plants and fuel-ethanol plants.
Major Events
Praj Industries has been involved in promotion of emerging energy crops like sweet sorghum for ethanol production and Jatropha for biodiesel production in India and abroad. The department of agriculture, Philippines signed a memorandum of association (MoA) with the company to promote energy crops and technology for biofuels production in Philippines.
Praj Industries, the ethanol technology major, declared the commissioning of its manufacturing unit at Kandla Special Economic Zone (SEZ). The SEZ based facility was an outcome of the company`s pursuit of global business of bio-fuel projects which involve supply of larger dimension equipment.
Tata Sons, the unlisted holding company of the Tata group, picked 14.7% stake in Praj Industries, in an open-market transaction totalling Rs 3.38 billion
Future Plans
The company will focus on renewable fuels, specifically fuel-ethanol, in the years to come. It has tied up with the Research Institute of India to conduct joint research in producing ethanol from biomass. The company is also in the process of upgrading its manufacturing systems by deploying ERP solutions.
The company also has a vision of expanding in the biofuels technology arena. For biodiesel projects, the company will offer in-house developed turnkey solutions including technology, engineering, plant & equipment and project management services.
Latest Orders
Praj Industries received an order for supply of key equipment to Vivergo Fuels, UK through its subsidiary, BioCnergy Europa BV (a joint venture with Aker Solutions, Netherlands). The plant is designed to produce approximately 400 million liters of fuel ethanol a year (1,200,000 liters per day).
The contract value for Praj is approximately Rs 1.2 billion. This will be the fourth bioethanol plant by Praj in Western Europe.
|
