Shares of Praj Industries Ltd. surged over 8% on Friday after its profit jumped in the fourth quarter and it announced plans for a joint venture with Indian Oil Corporation Ltd.
The joint venture will have 50:50 equity participation and an initial capital amount of Rs 50 lakh, according to a May 25 exchange filing.
It will set up biofuel production facilities and market compressed biogas, ethanol, sustainable aviation fuel, and various coproducts and intermediates, the filing said.
The company's fourth-quarter net profit rose 52.83% year-on-year to Rs 88.1 crore, while revenue rose 20.83% to Rs 1,003.9 crore in the quarter ended March, according to a May 25 exchange filing.
Praj Industries Ltd. (Consolidated, Year-on-Year)
Revenue up 20.82% at Rs 1,003.9 crore.
Ebitda up 38.85% at Rs 108.3 crore.
Ebitda margin at 10.78% versus 9.38%.
Net profit up 52.83% at Rs 88.1 crore.
Shares of Praj Industries surged 8.41% intraday before paring gains and trading at a 6% high, compared to a 0.3% rise in the NSE Nifty 50 as of 10:14 a.m.
The stock rose the most in nearly two months since March 29 intraday. The average traded volume so far in the day stood at 27 times its monthly average.
All eight analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The 12-month consensus price target implies a potential upside of 30.7%.
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