500 per cent returns in this multibagger stock: This ethanol company forms a JV with Indian Oil Corporation Ltd!
The stock gave multibagger returns of 505 per cent in just 3 years whereas as BSE Sensex Index is up by 78 per cent.
Praj Industries Limited (Praj) and Indian Oil Corporation Limited (IndianOil) signed a term sheet to advance plans to strengthen biofuels production capacities in India. Various biofuels covered under this MoU include Sustainable Aviation Fuel (SAF), Ethanol, Compressed Bio-Gas (CBG), Biodiesel and Bio-bitumen among others. Earlier in October 2021, both companies had entered into an agreement to form a 50:50 Joint Venture to this end.
Dr Pramod Chaudhari, Founder Chairman, Praj Industries said, " Indian Oil & Praj have been collaborating to facilitate India’s energy transition towards a greener future in the past as well. The nation’s first-of-its-kind advanced biofuels refinery at Indian Oil’s Panipat complex is based on Praj’s proprietary 2G technology. This year in May, Indian Oil and Praj partnered with AirAsia India and flew India’s first-ever commercial passenger flight powered by a blend of ‘indigenous’ Sustainable Aviation Fuel. We are proud of our partnership with IndianOil, which is further reinforced by this important milestone.”
Talking about the development, Mr Shrikant Madhav Vaidya, Chairman, IndianOil, said, "The collaboration with an Indian biofuel major – Praj, is a remarkable milestone in Indian Oil’s green energy transition journey. It will strengthen our resolve to achieve our goal of net-zero operational emissions by 2046 and maintain our leadership in the green energy domain.
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On Friday, one of the Top Gainers on BSE, shares of Praj Industries Ltd zoomed 9.54 per cent to an intraday high of Rs 405.90 per share from its previous closing of Rs 370.55. At the closing bell, the shares of the company were trading at Rs 397.45 per share, up 7.26 per cent with a spurt in volume by more than 7.35 times on BSE.
Additionally, the Board of Directors proposed a final dividend of Rs 4.50 per equity share or 225 per cent of the face value of Rs 2 per equity share, for the financial year ended 31 March 2023, which is subject to the approval of shareholders at the forthcoming AGM. Furthermore, the company has an order book of Rs 3,414 crore as of March 31, 2023.
The stock gave multibagger returns of 505 per cent in just 3 years whereas as BSE Sensex Index is up by 78 per cent. Investors should keep this Mid-Cap stock under the radar.