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.
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.
Location Wise Break-Up -
83% of Praj's revenue comes from India and 17% form the Rest of the World.
83% of Praj's revenue comes from India and 17% form the Rest of the World.
Financials -
Q3FY23 (YoY)
Revenue were at Rs.910 Cr.⬆️55%
PAT at Rs.62.3 Cr.⬆️68%
EBITDA at Rs.86 Cr.⬆️82%
EPS at Rs. 3.4 ⬆️68%
Q3FY23 (YoY)
Revenue were at Rs.910 Cr.⬆️55%
PAT at Rs.62.3 Cr.⬆️68%
EBITDA at Rs.86 Cr.⬆️82%
EPS at Rs. 3.4 ⬆️68%
Revenue Break-Up -
Praj earns 75% of it's revenue form Bioenergy, 19% from Engineering & 6% from HiPurity.
Praj earns 75% of it's revenue form Bioenergy, 19% from Engineering & 6% from HiPurity.
◾Bioenergy:
Praj is a name to reckon with in the global biofuel technology solutions. Praj’s ethanol technology serves various applications in different parts of the world.
Praj is a name to reckon with in the global biofuel technology solutions. Praj’s ethanol technology serves various applications in different parts of the world.
Praj’s Bioenergy portfolio comprises technology solutions for first-generation ethanol, advanced biofuel (second-generation ethanol), compressed biogas (CBG) and biodiesel systems.
◾HiPurity Systems:
Praj HiPurity Systems is a leading supplier for end-to-end turnkey solutions for the Biopharma industry, Sterile formulations, topical & oral formulations, Personal care and the Nutraceutical industry across the globe for the past 3 decades.
Praj HiPurity Systems is a leading supplier for end-to-end turnkey solutions for the Biopharma industry, Sterile formulations, topical & oral formulations, Personal care and the Nutraceutical industry across the globe for the past 3 decades.
It offers Water Systems, Modular Process Systems as well as Value-added Services to biopharma, sterile formulations, cosmetics & personal care, complex injectables, fermentation and other segments in the Biologics space.
◾Engineering Products:
Critical Process Equipment and System offers world class solutions to global customers across hydrocarbon industry, petrochemicals, industrial gas plants & chemical plants.
Critical Process Equipment and System offers world class solutions to global customers across hydrocarbon industry, petrochemicals, industrial gas plants & chemical plants.
It supplies environment-friendly brewery plants capable of producing best quality beers at most optimum costs. Offers customized plants, equipment & technology solutions & integrated solutions for effluent recycling & zero liquid discharge for various industrial applications.
Research & Development (R&D) -
The backbone of the company’s technology development is "Praj Matrix", the Innovation Centre.
Equipped with 16 laboratories for molecular biology, microbiology & bioprocess technology, process engineering & scale-up & chemical
sciences.
The backbone of the company’s technology development is "Praj Matrix", the Innovation Centre.
Equipped with 16 laboratories for molecular biology, microbiology & bioprocess technology, process engineering & scale-up & chemical
sciences.
First of its kind R&D facility with Bench & Pilot scale facilities that enable validation of scientific assumptions as well as rapid commercialization.
Matrix's main area of focus is renewable chemicals & materials, enzyme production and biofuels.
Matrix's main area of focus is renewable chemicals & materials, enzyme production and biofuels.
Praj Matrix, continued its relentless efforts on two technology initiatives
Bio Mobility & Bio Prism:
▪️Bio-Mobility platform, under this Praj is pursuing developments of Next gen & Future fuels including Sustainable Aviation Fuel & Bio-Hydrogen.
Bio Mobility & Bio Prism:
▪️Bio-Mobility platform, under this Praj is pursuing developments of Next gen & Future fuels including Sustainable Aviation Fuel & Bio-Hydrogen.
▪️Bio-Prism platform Praj is developing technologies to produce bio-based Renewable Chemicals and Materials (RCM). RCM produced from bio-based feedstocks, are sustainable alternatives to products made from fossil resources.
Manufacturing Capability -
Praj’s mfg capability is substantiated by a multi-disciplinary engineering team, world class mfg facilities at 4 different locations with excellent connectivity to ports & highways.
Sanaswadi, Urawade,
Wada (Maharashtra)
&
Kandla (Gujarat)
Praj’s mfg capability is substantiated by a multi-disciplinary engineering team, world class mfg facilities at 4 different locations with excellent connectivity to ports & highways.
Sanaswadi, Urawade,
Wada (Maharashtra)
&
Kandla (Gujarat)
Growth Drivers -
▪️Government initiatives:
Govt 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.
▪️Government initiatives:
Govt 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.
▪️Compressed Biogas (CBG):
Govt plans to set up 5,000 CBG plants across India with a production target of 15 MMT, under SATAT initiative. An approx investment of ₹2,00,000 Cr. is envisaged in next 5yrs.
Govt plans to set up 5,000 CBG plants across India with a production target of 15 MMT, under SATAT initiative. An approx investment of ₹2,00,000 Cr. is envisaged in next 5yrs.
▪️1st Generation Ethanol:
The target of E20 blending would demand production of ~1000 Cr Litres of Ethanol for blending purposes, this translates to
₹12,000-14,000 Cr. of Capex requirements.
The target of E20 blending would demand production of ~1000 Cr Litres of Ethanol for blending purposes, this translates to
₹12,000-14,000 Cr. of Capex requirements.
▪️Critical Process Equipment and Skids:
The global static and rotating
equipment market was $29.08 billion in 2020 and it is projected to grow from $29.84 billion in 2021 to USD 38.90 billion in 2028 at a CAGR of 3.9%.
The global static and rotating
equipment market was $29.08 billion in 2020 and it is projected to grow from $29.84 billion in 2021 to USD 38.90 billion in 2028 at a CAGR of 3.9%.
Praj Industries & Axens signs MoU:
Praj signs MoU with Axens to work on of Sustainable Aviation Fuel (SAF) projects in India for SAF from low carbon alcohols through Alcohol to Jet (ATJ) pathway.
Praj signs MoU with Axens to work on of Sustainable Aviation Fuel (SAF) projects in India for SAF from low carbon alcohols through Alcohol to Jet (ATJ) pathway.
Risks -
Delay in order execution, or contracting of orders.
Delay in execution of Government policies and International policies & regulations.
Raw material inflation, technological advancement by competitors may disrupt the business.
Delay in order execution, or contracting of orders.
Delay in execution of Government policies and International policies & regulations.
Raw material inflation, technological advancement by competitors may disrupt the business.
Fundamentals -
Market Cap : ₹ 6,483 Cr
P/E (Stock): 31
P/E (Industry): 23
P/B : 7.08
Debt to equity : 0.03
ROE : 17.5%
ROCE : 23%
EV/EBITDA : 20.3
Market Cap : ₹ 6,483 Cr
P/E (Stock): 31
P/E (Industry): 23
P/B : 7.08
Debt to equity : 0.03
ROE : 17.5%
ROCE : 23%
EV/EBITDA : 20.3
Conclusion -
Praj is well poised to benefit from upcoming opportunities given its strong leadership in domestic ethanol plants (~50% market share), global presence & focus on future-ready technologies like 2G plants, Compressed Bio Gas (CBG), etc.
Praj is well poised to benefit from upcoming opportunities given its strong leadership in domestic ethanol plants (~50% market share), global presence & focus on future-ready technologies like 2G plants, Compressed Bio Gas (CBG), etc.
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