Praj Industries - Compressed Bio Gas, SAF To Drive Bio-Fuel Theme Post EBP-20: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We revise our FY24/25E estimate by 1%/6.3% post factoring in improved visibility from compressed bio gas plants and its engineering business (modular process equipment), however, downgrade the rating to ‘Accumulate’ from 'Buy' given recent steep run up in share price. We met with the management of Praj Industries Ltd. where management highlighted that Global Biofuels Alliance announced at G20 event is positive development for Bio-energy. Traction is witnessed from CBG plants and management expects tenders of 100 CBG plants to be out in next one year totaling to opportunity worth Rs 100 billion (~Rs 1 billion/plant). Post ethanol blending with petrol and CBG, upcoming opportunity arises from Sustainable Aviation Fuel from FY27 onwards. Praj has been continuously focusing on research and development and has setup Praj Matrix with investment of $30 million, which will focus on development of new technology and renewable chemicals and materials. We remain positive on Praj in long run, given-its strong leadership in domestic ethanol plant (~50-55% market share),increasing traction from CBG plants,focus on future-ready technologies like 2G plants, CBG, ECTA, SAF etc. healthy outlook for engineering segment from exports market andupcoming opportunity from SAF post FY27. The stock is trading at price-to-earning of 35.4 times/31.1 times on FY24/25E. We revise our target price to Rs 618 (Rs 475 earlier), valuing it at PE of 33 times FY25E (27 times FY25 earlier), factoring in improved revenue visibility, amidst opportunities arising from CBG and sustainable aviation fuel in long run. Downgrade to ‘Accumulate’..Click on the attachment to read the full report:.Cummins India - Near Term Domestic Demand Intact: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Praj Industries - Compressed Bio Gas, SAF To Drive Bio-Fuel Theme Post EBP-20: Prabhudas Lilladher

Global Biofuels Alliance announced at G20 event is positive development for bio-energy.

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