PRAJ INDUSTRIES Analysis !!
#PRAJIND

A detailed thread below 🪡🧵
About - Praj Industries was incorporated in 1983 by Dr. Pramod Chaudhuri. Praj is one of the most reputed & technologically advanced biotech & engineering companies in the world. Co has 1000+ customer references in 100+ countries across 5 continent.
Financial Summary -
Q3 FY22 (YoY)

Revenue were at Rs.585 Cr.⬆️68%
EBITDA at Rs.51 Cr.⬆️28%
Pat at Rs.37 Cr.⬆️31%
Business Segments :-

▪️ BIO ENERGY -

They offers innovative formulation that add economic value to biochemical processes. These are formulated using useful bacteria, yeasts, fungi, enzymes, anti-microbials and nutrition biomolecules.
Praj's Bio-Mobility™️ , patform of biofuels decarbonize the transportation sector, the platform of technologies envisages the use of renewable resources to produce carbon neutral transportation fuel across all modes of mobility.
Praj's ' efinity™️' , offers end to end solutions to set up bio-ethanol plant based on it's proprietary technology by processing a wide range of agri residue such as rice straw, wheat straw, bagasse, etc to produce bioethanol and renewable chemicals.
Reneuable natural gas -
They develop advanced bio methanation technology based on proprietary microbiological pre-treatment for production of compressed biogas, they commercialized a proprietary renewable gas technology – RenGasTM &has commissioned over 40 plants in India.
The process creates value-added manure with organic soil as a byproduct while advanced biogas cleaning techniques gives pure methane.
Sustainable Aviation Fuel (SAF) -

The Praj - Gevo Inc. innovative process uses iso-butanol produced from renewable sources (e.g. Sugars and Starch and Biomass) as feedstock to produce SAF. Gevo Inc. will license its technology and Praj will provide technology, plant equipment *
* and EPC services to refineries for converting renewable iso-butanol into Sustainable Aviation Fuel and premium gasoline through the ASTM-approved pathway of Alcohol-to-Jet (ATJ).
Marine Biofuel -

Marine biofuels produced from certified lignin-based feedstocks are rapidly gaining interest among international ocean shippers and carriers.
▪️ENGINEERING -

CO Offers a range of static equipment such as pressure vessels, reactors, shell & tube heat exchangers, columns, and other proprietary equipment as per the client requirements. They provide modular process skids and packages. A modular process skid is a
system within a frame that allows easy transportation.
Co Undertakes end-to-end projects for modular process skids and packages and supports clients with Finite Element Analysis, Process & Thermal Design and Piping Design & Stress Analysis & design skids using software.
The Brewery division has been offering customized plants, equipment & technology solutions to customers in the brewing industry. With over 70% of market share in India & experience of installing projects in Africa & South East Asia.
▪️ HIGH PURITY SOLUTIONS -

HiPurity Systems Limited (a wholly-owned subsidiary) provides value added and end-to-end integrated solutions to the Pharma, Biotech and Wellness industry.

Pharmaceutical water is one of the core raw
material/ingredient/solvent/cleaning agent, etc.
It has to undergo a change in terms of end water quality using different technologies for treatment, design principles, inspection principles & quality processes.

With more than 450+ installations globally, it has evolved to be one of the key solution providers in the Industry
Catering to industries like cosmetics, food & beverage, health supplements & nutraceutical.

The Modular Process Systems Business Line provides solutions to Pharma/Lifescience clients for a variety of applications in Biopharma, Sterile Formulations and Topicals & Orals.
The co provides special products like ozone systems and combi test kits and special services like electro polishing, on-site training and Riboflavin test at site.
They also providing spares and consumables like membranes, chemicals, tubes & fittings nd valves, instruments & pumps
R&D -

Backbone of the company’s technology development is Praj Matrix, the Innovation Centre. It is a state-of-the-art facility certified by the Govt of India’s Dept of Scientific & Industrial Research, equipped with 16 labs for molecular biology, microbiology &bioprocess tech.
Praj Matrix – Bio-Prism™️ -

Praj is developing technologies for production of bio-based Renewable Chemicals and Materials (RCM).

• RCM produced from bio based feedstock are sustainable alternatives to products made from fossil resources.
Sugary, starchy and cellulosic agri-based feedstocks along with gases like biogas, methane and various non-edible oils are the starting
materials for RCM.
• For conversion of these feedstocks to the final molecule of interest, it is exploring Bio-catalytic, Chemo-catalytic & *
*Thermo-chemical routes.
• Within the bio-industrial ambit, a spectrum of bio plastics remain a priority, along with cellulose-lignin refinery products and specialty products.

• These products have applications in industry sectors such as automotive, packaging, furnishing etc.
Growth Drivers -
The government of India has advanced the target for 20% ethanol blending in petrol (also called E20) to 2025 from 2030 to reduce the country’s oil import bill & carbon dioxide pollution. The government is also taking efforts to develop an ethanol economy.
Risk-

Praj operates in the cyclical capital goods sector, where demand is dependent on the CAPEX cycle of its end-user industries hence, any slowdown in the growth prospect of end-user industries would affect Praj's top line & its profitability.
Conclusion -
It operates in a high growth market & has managed to dlvr strong top-line growth over the last five years. The stock is expected to deliver good returns on the back of strong fundamentals.

Please🙏 like👍, comment & retweet♻️ if you find it useful. @caniravkaria

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