Praj Industries Gains Over 5%, Soars 95% from 52-Week Low

Praj Industries share price reached a new peak of ₹874.3, rising 6% in intraday trading on Wednesday, thanks to a strong business outlook. The stock has surged by 95% from its 52-week low of ₹448, recorded on March 15, 2024. The company’s stock price has now surpassed its previous high of ₹853.30 from December 2, 2024.

Growth Drivers and Strong Outlook

Praj Industries expects continued growth from the second half of the fiscal year, primarily driven by the increasing demand for ethanol. The company anticipates meeting the government’s 25% ethanol blending target with an additional 3.5 billion litres of ethanol. The ramp-up of the new GenX facility in Mangalore is also expected to boost revenue.

Business Expansion and Revenue Growth Target

Since November 21, Praj’s stock has gained 28%, following the company’s announcement of exploring new sectors like sustainable aviation fuel (SAF), biopolymers, and energy transition. Praj aims to triple its current revenues, which are about ₹3,400 crore annually, reaching ₹10,000 crore by 2030. Additionally, the company plans to increase its export share from 29% to 50% by 2030.

Sustainable Aviation Fuel (SAF) and Global Opportunities

The Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) has opened up new opportunities for Praj in the sustainable aviation fuel (SAF) market. India aims to blend 1% SAF by 2027 and 2% by 2028, while the EU and US have set higher targets. Praj is also targeting international markets like Brazil, Argentina, and Paraguay for corn-based ethanol and expects to see increased opportunities in SAF production.

Bioenergy and Bio-Bitumen Innovations

Praj is focusing on bioenergy, particularly ethanol from Napier grass, and expects SAF orders from the second half of FY25. The company is also working on lignin-based bio-bitumen, which was used in India’s first sustainable road. This innovation helps replace fossil-based bitumen and reduces greenhouse gas emissions by 70%, contributing to a more sustainable road infrastructure.

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