Praj Industries shares jump 8% on formation of JV with Indian Oil for biofuels production

economictimes.indiatimes.com:

Praj Industries shares jumped 8% to Rs 400 in Friday's trade on BSE after the firm signed a term sheet with Indian Oil Corporation (IOCL) 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, the company said in an exchange filing. Earlier in October 2021, both companies had entered into an agreement to form a 50:50 Joint Venture to this end.

At 10.14 am, the scrip was trading 7.3% higher at Rs 397.7 on BSE. While on a year-to-date, the stock surged 11%. Meanwhile, Indian Oil shares surged over 2% in Friday's trade.

Pramod Chaudhari, Founder Chairman of Praj Industries, said, «This year in May, IndianOil 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 with this important milestone.» Also, a meeting of the members of Praj Industries will be held on Wednesday, July 26, 2023, to consider the payment of dividends for the year ended 31st March 2023. The recommended dividend, if approved, would be paid before the statutory time limit, to those Members whose names appear in the Registrar of Members on 19th July 2023, Praj Industries said.

As per Trendlyne data, the average target price of the stock is Rs 487, which implies an upside potential of 21% from the current market prices. The consensus recommendation from 6 analysts for the stock is a 'strong buy'. Technically, the stock's day RSI (14) is at 42.9.