Bioenergy, exports to drive Praj Industries's earnings growth
Praj Industries Ltd’s investors find themselves in a sweet spot. After all, the shares have jumped by almost 67% in the past six months. The company aims to triple its revenue by FY30, it said in a recent analysts meeting.
The management also cited its two-pronged strategy to focus on bio-mobility (decarbonizing the transportation industry through advanced, next generation, and conventional biofuels) and bio-prism (technologies for production of renewable chemicals and materials). Praj Industries’s bioenergy segment is seen as driving future growth. It provides technology and equipment to ethanol plants and houses technology for the production of compressed biofuels (CBG) and future fuels such as sustainable aviation fuel (SAF).
The segment contributed 79% of revenue in the first half of FY24. The recent government directive mandating the blending of CBG with CNG for transportation and PNG for domestic use within the city gas distribution sector is expected to be a big catalyst for growth. The management is confident that this will accelerate the pace of order awards in the CBG business.
Along with CBG, the SAF business is also expected to be a key driver in achieving the FY30 revenue target. Strategic partnerships with Gevo, Axens, and Indian Oil Corp. Ltd are expected to enhance opportunities in the SAF space.
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