Praj Industry stock extends gains for 5th straight day, soars 6.5% to hit new record high; what's driving the rally?

livemint.com:

Praj Industries, a leading global biotechnology and engineering company, extended their winning streak for the fifth consecutive trading session on Wednesday as the stock spiked another 6.5% to hit a new record high of ₹658 apiece, surpassing its November 2023 high of 650 apiece.The stock began its upward trajectory after the company released its Q4FY24 earnings on May 30. Over the subsequent 10 sessions, it sustained this bullish trend, resulting in a gain of 30%.Also Read: 5 small-cap stocks including RattanIndia, Lloyds Engineering gave returns up to 12000% in last 5 years; check full listFurthermore, the positive sentiment surrounding the stock was bolstered by the BJP-led NDA returning to power, instilling confidence among investors that the government would uphold its commitment to the Ethanol Blending Program (EBP).

The program aims to achieve a blending rate of 20% by 2025–26.With a commanding market share exceeding 50% in 1G ethanol and its unique position as the sole player in 2G ethanol, the company is well-positioned to benefit from the government's EBP targets. The program's ambitious goals, requiring approximately 17 billion liters of ethanol production capacity, further underscore the company's favorable position in meeting growing demand.Also Read: Modi 3.0: Can Anil Ambani emerge as next market leader like Gautam Adani?Hardeep Singh Puri on Tuesday resumed the charge as the Union Minister of Petroleum and Natural Gas in the Modi 3.0 government.

After taking charge, Puri said, "We were able to cross 15 percent of ethanol blending. As you know, the Prime Minister had set a target of 20 percent blending by 2030.