PRAJ IND. & SUGAR STOCKS : Government of India has decided to open a window for 6-Months for inviting fresh applications from project proponents to set up new distilleries or expansion of existing distilleries to produce 1-G ethanol.
#PRAJIND #KMSUGAR #RENUKA #DHAMPURSUG
For #NIFTY50, tomorrow can be a decider for a clear direction. If opens Gap Down, 17320-17230 will act as cushion and good buying cam happen there. Panic only below 17250 is broken and sustained on DCB. For upside, good resistance at 17560-17600. Above 17600 DCB, it can reclaim 17750-17800 levels. Range is wide, sp expect huge volatility. As of now, I am buyer of dips but will change my stance according to market. That's what traders should do.
FMCG and Energy sector looking strong, IT is looking weak. Banks, in all dips, should be bought.
For Cash trades, find your picks in Textile sector.
Stocks in Focus:
#CDSL, #IIFL, #IGPL & #PRAJIND
Have a profitable day ahead.
*Praj Industries developing binder to blend ethanol with diesel*
Firm collaborating with ARAI, setting up three plants to use cellulosic feedstock
Praj Industries Ltd, India’s multinational process and project company, in collaboration with the Pune-based Automotive Research Association of India (ARAI), is developing a binder that will help blend ethanol with diesel, the company’s top official has said.
“This project (binder) is in the testing phase and once the results are out, we will approach the government for new fuel notification and policy interventions as needed,” said Shishir Joshipura, Chief Executive Officer and Managing Director (CEO & MD), Praj Industries.
Currently, ethanol is being blended only with petrol and the Centre has set up a target of achieving 20 per cent ethanol blending by 2025.
Developing a binder that can help in blending ethanol with diesel will be a game-changer. This is because diesel consumption at 88.2 billion litres in 2020 was more than double the consumption of petrol (37.2 billion litres).
Diesel does not blend that easily as petrol with ethanol. That’s why we are developing the binder,” the Praj Industries CEO & MD said.
The country had achieved 8 per cent blending last season (December 2020-November 2021) and going by the firm’s order books, the 20 per cent ethanol blending target will be achieved in 2025.
The ethanol blending programme is progressing very well. The government has set up an ambitious but achievable target. We will get to the target — give or take 5-6 months — since the environment is encouraging and the industry is responding. It was 5-5.5 per cent when the ethanol programme was launched in 2018-19,” Joshipura said.
Praj Industries has commercialised an innovative technology to convert cellulosic feedstock, which is basically crop residues and remnants on the field after the crop is harvested, into ethanol. “We are setting up three commercial-scale second-generation ethanol We are setting up three commercial-scale second-generation ethanol projects for oil marketing companies such as IOCL, HPCL and BPCL. The first plant is expected to be commissioned later this year,” he said.
These cellulosic feedstocks, like in the case of paddy, are burnt on the field, leading to air pollution. Similarly, corn leaves and stalks are also left on the field as wastes.
“We now have the technology which is very new to convert these into ethanol. The cellulosic feedstock will help create the capacity needed for the country,” the Praj Industries Ltd CEO & MD said.
Joshipura said his firm has set up Europe’s largest ethanol plant in the UK which uses wheat as the feedstock. The plant has been set up using indigenous technology.
Stating that demand for the technology is high across the globe, he said Praj Industries has set up several plants abroad. “Till date, we have set up 200 ethanol plants based on starchy feedstock such as wheat and corn,” the Praj Industries official said, adding it was looking to bring such technology to India.
The Pune-based firm is also setting up two plants that can use wastes (effulents from sugar mills and agricultural waste) to convert them into compressed bio gas.
“We need multi feedstocks. We need multiple technologies too. Renewable natural gas is as good as compressed natural gas and more efficient in vehicles,” he said.
*Sustainable jet fuel*
Praj Industries has also developed technology to produce sustainable aviation fuel (SAF) for jets. “This will produce SAF identical to aviation turbine fuel with molecule-to-molecule substitution. Two years down the line, we could also see similar development for an alternative to marine fuel, which is polluting the sea,” Joshipura said.
The company has developed a technology to produce lignosulphonate — which binds cement, water and stone in construction — from bioresources. Also, it has developed bio bitumen that can be used as a binder in road construction.
PRAJ IND. Q3 : CONS. NET PROFIT UP 31 % AT 37 CR (YOY), UP 11 % (QOQ)
REVENUE UP 68 % AT 585 CR (YOY), UP 10 % (QOQ)
EBITDA UP 28 % AT 51 CR (YOY), UP 11 % (QOQ)
MARGINS AT 8.7 % V 11.44 % (YOY), 8.66 % (QOQ)
PRAJ IND ; Mutual Funds Increases Stake To 8.27 % From 6.67 % Earlier in Q3
Axis Direct target on PRAJIND
Broker: Axis Direct
Price @ Call: 355
The govt. has raised the price of ethanol to woo sugar industries to enhancee production. Praj Industries, the engineering giant that makes machinery for making ethanol, will be one of the biggest beneficiaries.
#PRAJIND will declare results on Oct 27, 2021
Do you have any view on the results? Let's aggregate whatever information we have from other sources for everyone's benefit.
Source: Annual Report 2021
Your Company is in the business of developing and deploying technology led sustainable solutions that help conserve the environment. As a build-up to COP 26 Climate Change summit at Glasgow scheduled in November 2021, Praj looks forward to joining UNFCCC’s Race to Zero global campaign aimed at zero carbon recovery to unlock inclusive and sustainable growth.
I am pleased to table major developments, your Company achieved during FY 2020-21. As a first for any Indian company, Praj was ranked 2nd in Low Carbon Fuels and Renewable Chemicals category while 3rd in Bio design & Engineering category, in a list of world’s 50 Hottest companies in global bio economy for 2021. Your Company set up India’s first of its kind demo plant for production of Compressed Bio gas using variety of agri-residues as feedstock. Praj successfully commissioned nation’s first integrated bioenergy complex in UP, that produces bioethanol, CBG and other value added products. Strong customer relationships are helping our engineering businesses report robust performance in uncertain times. Praj Hi Purity systems is playing a key role in fighting the pandemic by partnering with leading pharma companies to scale up vaccine manufacturing capacity to cope up with high demand. 👈
Your Company has also made inroads into new frontier of bio economy namely, Bio-Prism TM portfolio of technologies for production of renewable chemicals and materials (RCM). Made from renewable feedstock, RCMs are green & sustainable alternatives for commodity products made from hydrocarbon sources. They help reduce GHG emissions and conserve environment. We have identified specific growth industries such as Bio-plastics, Cellulose –Lignin refinery products, specialty chemicals, agri-supplements and bio-industrial products.
Praj Matrix R&D centre with over 300 international patents filings continues to pursue innovative technology solutions. Our scientists are exploring exciting opportunities in energy transition including Bio Hydrogen.
While closing, I wish to reiterate that Your Company remains resilient in these uncertain times, staying focused on creating value for our stakeholders. Biofuels are at an inflection point and there is no doubt in my mind that it is an idea whose time has come. Your Company is in the pole position to capitalize on the unfolding opportunities and propel itself into a new growth orbit. I remain confident of your continued support in realizing company’s vision of making the world a better place. Thank you for your continued support.
Praj Ind - Q4FY21 (Audited – Cons)
Revenue from operations 567.1 Crs
296.2 Cr (91.51%) YoY | 347.8 Cr (63.48%) QoQ
Year ending revenue: 1,304 Cr Vs. 1,102 Cr (18.31%)
Net Profit of 52.01 Cr
24.86 Cr (109.51%) YoY 28.16 Cr (85.13%) QoQ
Year ending Net profit: 81 Cr Vs. 70.4 Cr (162.54%)
EPS (in Rs.) 2.84
1.36 YoY | 1.54 QoQ
Year ending EPS: 4.42 Vs. 3.85
View: Result is above expectation and strong. YoY and QoQ revenue significantly up and profit also double in YoY.
Business Updates & Highlights
EBITDA (Cons.) in Q4FY21 was around INR 74.9 Cr Vs. 31.82 Cr in Q4FY20 Vs. 39.8 Cr in Q3FY21 therefore up by 135% in YoY and 87.9% up by QoQ. EBITDA margin in Q4FY21 was around 13.2% Vs. 10.7% in YoY Vs. 11.4% in QoQ therefore EBITDA margin improved by 250 bps in YoY and 180 bps in QoQ.
The consolidated order backlog as on March 31, 2021 stood at Rs. 1, 748 crore (FY20 order backlog at Rs. 1,083 crore), which comprised 85% domestic orders and 15% international orders. Order intake during the quarter Rs. 650 crore
Project development status
Praj Industries bagged a prestigious breakthrough order from Hindustan Petroleum Corporation Limited (HPCL) during the quarter for setting up CBG project at Badaun in Uttar Pradesh. The project has capacity to process 35,000 MT of rice straw as feedstock to generate 5,250 MT of CBG annually.
In addition, the project will also generate 23,000 MT high quality solid biomanure and 35,000 MT of liquid bio-manure for ferti-irrigation o This project will be completed and commissioned within 12 months timeframe.
The Company bagged an order from Godavari Biorefineries to set up India's largest capacity syrup based ethanol plant in Karnataka o As a part of this project, Praj will expand the existing ethanol manufacturing capacity to 600 KLPD, using sugarcane syrup. When commissioned, this will become India's largest capacity syrup based ethanol plant.
Dividend: The Board of Directors has recommended a dividend of Rs. 2.16 per share (108 % on the Face Value of Rs. 2 per share) for the financial year ending 31st March 2021
ROE and ROCE is around 9% and 11% respectively and book value per share is around INR 40 and share is currently trading at 6.2x of its book value. Company is currently trading at annualized PE of around 57 which is high as per Industry benchmark. Promoter holding in the company is around 32.9% which is low but stable. FIIs and mutual fund hold around 11.6% and 15.2% respectively which is slightly decreased by FIIs and DIIs. Strong operating cash flows as of March 2021 was around 225 Cr Vs. 15 Cr in March 202. The good thing is company is virtually debt free.
Recommendation / Share view Share price high 261 (52 week) and now 248. Praj, India's most accomplished industrial biotechnology company is driven by innovation, integration and delivery capabilities. Over the past four decades, Praj has focused on the environment, energy, and agri-process industry, with over 750 customer references spanning 75 countries across 5 continents. Biomobility™ and Bio-Prism™ are the mainstays of Praj's contribution to the global Bioeconomy. The BioMobility™ platform offers technology solutions globally to produce renewable transportation fuel, thus ensuring sustainable decarbonization through circular bioeconomy.
Position: Share strong support price is INR 220/185. Long term investor should continue with the company and any correction will give good opportunity to enter. Target in short term can be 285+
- Strong Quarterly and yearly performance, in this quarter PAT more than double and margin also improved. Strong operating cash flows which was highest and increased by more than 14 times as compare with March 2020.
On the domestic Bioenergy front, ethanol blending with petrol at an all-India level has reached more than 7.4% in the first five months of the ethanol supply year 2020-21. This, is the highest-ever recorded ethanol blending level at an all-India basis.
Stocks in News
Tata Steel: The company posted consolidated profit of Rs 6,644.1 crore for Q4FY21 against loss of Rs 1,481.3 crore in the year-ago period. Consolidated revenue increased to Rs 49,977.4 crore from Rs 36,009.4 crore in Q4FY20.
Maharashtra Seamless: ONGC has issued the letter of award to Jindal Drilling & Industries for deployment of Jack-up drilling rig 'Jindal Explorer' owned by Maharashtra Seamless on charter hire contract for a period of 3 years.
Praj Industries: HDFC Mutual Fund sold 4,34,583 equity shares (0.24 percent) in Praj Industries via open market transaction on May 3, reducing shareholding to 6.51 percent from 6.75 percent earlier.
IDBI Bank: Cabinet Committee on Economic Affairs has given its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank. LIC may reduce its shareholding in IDBI Bank through divesting its stake along with strategic stake sale envisaged by the government, said the bank.
Adani Green Energy: The company reported consolidated profit of Rs 104 crore for Q4FY21 against Rs 56 crore reported in Q4FY20, revenue rose to Rs 986 crore from Rs 696 crore in the year-ago period.
Wipro: The company partnered with Transcell Oncologics to transform vaccine safety assessment using augmented intelligence.
#WIPRO #ADANIGREEN #IDBI #PRAJIND #TATASTEEL
#PRAJIND Industries Sees A Potentially Big Opportunity Beyond Ethanol
India’s ethanol manufacturing capacity could rise threefold as the nation allowed production from feedstocks other than sugarcane and targets higher blending with petrol, according to biofuels maker Praj Industries Ltd. The nation advanced the target for 20% ethanol blending by oil retailers to 2025 to cut dependence on costly imports.
Cabinet may soon take up extending subsidy to BPCL after privatisation
The Union Cabinet may soon consider allowing Bharat Petroleum Corporation (BPCL) to receive subsidy for specific petroleum products for a few years after it is privatised to ensure continuity. The oil ministry has decided to extend the current practise of subsidising LPG for BPCL customers for a few years, and a Cabinet note on the same has been prepared, the official said.
#PRAJIND cmp 183 stoploss 149 target 234
#VAIBHAVGBL cmp 3895 stoploss 3000 target 5000
#CUMMINSIND cmp 881 stoploss 740 target 1090
#APLAPOLLO cmp 1378 stoploss 1050 target 1800
#GRAPHITE cmp 479 stoploss 400 target 600
#KAJARIACER cmp 997 stoploss 840 target 1260
Grasim cmp 1344 stoploss 1120 target 1690
Jktyre cmp 123 stoploss 97 target 152
Nfl cmp 64 stoploss 57 target 79
Stocks to watch today 👀
Keep these stocks in your watchlist and enter above the given breakout level
[2nd 5 stocks]
#ASHOKLEY above 124.50
#COALINDIA above 149.15
#BHARTIARTL above 570.50
#PRAJIND above 132.05
#TATACHEM above 528.40