During Friday’s trading session, the shares of a leading biotechnology and engineering company globally surged nearly 9.6 percent to Rs. 740.9 on BSE, after the company announced that it is expecting 3 times revenue growth by 2030 and eying opportunities in multiple sectors.
With a market cap of Rs. 13,443.2 crores, at 12:19 p.m., the shares of Praj Industries Limited were trading in the green at Rs. 731.35, up by nearly 8.2 percent, as against its previous closing price of Rs. 675.9.
What’s the news:
During a press conference, Praj Industries interacted with the media to discuss potential opportunities and the company’s preparedness to seize them.
According to the latest filings with the stock exchanges, Praj Industries is targeting growth in several sectors, including sustainable aviation fuel (SAF), biopolymers, and energy transition & climate action (ETCA). The company is also expecting its revenues to increase three-fold or by 300% by 2030.
The company’s Chairman stated that the traditional oil and gas market will continue to attract new investments, estimated at Rs. 21 lakh crore globally over the next 10 years. This will drive substantial demand for modularization solutions for setting up plants in these key sectors.
He further highlighted that to meet this demand, Praj has developed strong engineering capabilities in modularization and has set up an advanced manufacturing facility in Mangalore, Karnataka. The plant, built with an investment of ~Rs. 400 crores across 123 acres, is projected to generate annual revenues of Rs. 2,000-2,500 crores at the optimum level.
The management stated that Praj Industries’ current annual revenues are around Rs. 3,400 crores, with a goal to reach Rs. 10,000 crores by 2030. At present, the share of exports is around 29 percent, and the company aims to increase this share to 50 percent by 2030.
Financials:
Praj Industries reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of nearly 7.5 percent, falling from Rs. 882 crores in Q2 FY24 to Rs. 816 crores in Q2 FY25. Similarly, during the same period, the company’s net profit decreased from Rs. 62 crores to Rs. 54 crores, representing a decline of around 13 percent YoY.
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Key Financial Ratios:
In terms of key financial metrics, Praj Industries has a Return on Equity (RoE) of 23.3 percent and a return on capital employed (RoCE) of 29.3 percent. Additionally, the company’s debt-to-equity ratio stands at 0.13.
Stock Performance:
The stock has delivered positive returns of nearly 27 percent in one year, as well as around 40.5 percent returns in the last six months. So far in 2024, the shares of Praj Industries have given positive returns of about 32.2 percent.
About the company:
Founded in 1983, Praj Industries Limited is engaged in the business of process and project engineering, along with providing design and engineering services, serving both domestic and international markets.
The company’s diverse portfolio comprises bio-energy solutions, critical process equipment & modularization, breweries, zero liquid discharge systems and high-purity water systems.
Written by Shivani Singh
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