Review

PRAJ INDUSTRIES 

Ticker : 522205
FV: Rs2
52-Week H/L: Rs168/72.50 

We had recommended Praj Industries in vol. 35, no. 27, (dated April 29, 2019), when the scrip was trading at Rs 143. Our recommendation was based on the government's focus on increasing ethanol blending, which augured well for the company. Praj Industries is a biofuel technology company providing number of processes and systems for ethanol and biodiesel productions. The business areas of the company covers alcohol plants. On the consolidated front, the net sales in Q4FY19 stood at Rs 368.17 crore, up by 34 per cent from Rs 274.53 crore in Q4FY18. The PBIDT was at Rs 34 crore in Q4FY19, witnessing an expansion of 26 per cent from Rs 27.05 crore in Q4FY18. Praj Industries has signed a construction licence agreement (CLA) with Gevo, Inc, USA dated April 4, 2019, to commercialise technology for the production of Isobutanol using sugary-based feedstocks, such as juice, syrup and molasses. We urge our investor-readers to HOLD the stock.