Praj Industries offers innovative solutions to significantly add value in bio-ethanol, bio-diesel and brewery plants and related waste water treatment systems. It delivers know-how, license, engineering design, plant & equipment, project management, commissioning and customer care and turnkey projects.
The company has recently formed a 54 : 46 JV company in Brazil with a Brazilian Engineering, Procurement Construction & Manufacturing Company, Jaragna Equipamentos Industriais Ltda. which would provide Praj an entry into the fastest growing ethanol market in the world. This JV company will supply end to end solutions for sugarcane juice to ethanol production.
The company has posted very good results for the year ended 31st March 07, wherein, its total income was at Rs.616 crores with PBT of Rs.110.36 crores and PAT of Rs.86,53 crores, on an equity of Rs.16.78 crores. In July 07, due to 1 : 1 bonus issue and preferential issue, paid-up equity of the company increased to Rs.36.58 crores.
For 9 months ending 31-12-2007, the total income of the company was at Rs.525 crores with PBT of Rs.107 crores and PAT of Rs.94.88 crores, resulting in an EPS of Rs.5.25 for the period. The bottomline of the company for 9 month period is higher than whole of FY 07, inspite of topline being lower by Rs.92 crores for the period, over FY 07.
The present equity of the company is Rs.36.88 crores with face value of Rs.2. Of this, as at 31-12-2007, promoters stake is 21.35% while 25% is held by Mutual Funds, Banks and FIIs and about 54% by public.The prominent shareholders of the company are Tata Sons holding 7.34% stake who have acquired this stake from the promoters in September 07. Vinod Khosla, a PE investor holds 6.75% while Rakesh Jhunjhunwala holds about 7.90%. Rakesh Jhunjhunwala though resigned from the Board of the company replacing him with his nominee, the company has Mr. Kishor Chaukar on the Board as nominee of Tata Sons.
The company has developed technology for ethanol production based on sugarcane, sweet sorghum, corn and of bio-diesel based on Jathropha. Bio-fuel is being explored all over the world, due to soaring crude prices now crossed $ 100 per barrel. The company is hopeful of touching Rs.1,000 crores as its topline for FY 09.
FY 08 is likely to result in a PAT of 142 crores, resulting in an EPS of Rs.7.80 with topline of Rs.780 crores. FY 09 is likely to see a topline of Rs.1,000 crores with PAT of close to Rs.200 crores, resulting in an EPS of Rs.11.
Share is now ruling at Rs.133 which discounts its FY 09 earnings by about 12 times which is quite low when compared with other engineering or capital goods manufacturers.
Share had a 52 week high of Rs.273 which has now corrected by over 50% in this carnage, During FY 07 the company paid 135% dividend while for FY 08 an interim dividend of 99% has already been paid.
Share at Rs.133 makes a safe and excellent bet for those investors who have 8 – 10 months view on the stock, which has potential to touch Rs.200 mark. The sector of the company has tremendous growth potential for the next 4 – 5 years. A safe bet at Rs.133.
The company has recently formed a 54 : 46 JV company in Brazil with a Brazilian Engineering, Procurement Construction & Manufacturing Company, Jaragna Equipamentos Industriais Ltda. which would provide Praj an entry into the fastest growing ethanol market in the world. This JV company will supply end to end solutions for sugarcane juice to ethanol production.
The company has posted very good results for the year ended 31st March 07, wherein, its total income was at Rs.616 crores with PBT of Rs.110.36 crores and PAT of Rs.86,53 crores, on an equity of Rs.16.78 crores. In July 07, due to 1 : 1 bonus issue and preferential issue, paid-up equity of the company increased to Rs.36.58 crores.
For 9 months ending 31-12-2007, the total income of the company was at Rs.525 crores with PBT of Rs.107 crores and PAT of Rs.94.88 crores, resulting in an EPS of Rs.5.25 for the period. The bottomline of the company for 9 month period is higher than whole of FY 07, inspite of topline being lower by Rs.92 crores for the period, over FY 07.
The present equity of the company is Rs.36.88 crores with face value of Rs.2. Of this, as at 31-12-2007, promoters stake is 21.35% while 25% is held by Mutual Funds, Banks and FIIs and about 54% by public.The prominent shareholders of the company are Tata Sons holding 7.34% stake who have acquired this stake from the promoters in September 07. Vinod Khosla, a PE investor holds 6.75% while Rakesh Jhunjhunwala holds about 7.90%. Rakesh Jhunjhunwala though resigned from the Board of the company replacing him with his nominee, the company has Mr. Kishor Chaukar on the Board as nominee of Tata Sons.
The company has developed technology for ethanol production based on sugarcane, sweet sorghum, corn and of bio-diesel based on Jathropha. Bio-fuel is being explored all over the world, due to soaring crude prices now crossed $ 100 per barrel. The company is hopeful of touching Rs.1,000 crores as its topline for FY 09.
FY 08 is likely to result in a PAT of 142 crores, resulting in an EPS of Rs.7.80 with topline of Rs.780 crores. FY 09 is likely to see a topline of Rs.1,000 crores with PAT of close to Rs.200 crores, resulting in an EPS of Rs.11.
Share is now ruling at Rs.133 which discounts its FY 09 earnings by about 12 times which is quite low when compared with other engineering or capital goods manufacturers.
Share had a 52 week high of Rs.273 which has now corrected by over 50% in this carnage, During FY 07 the company paid 135% dividend while for FY 08 an interim dividend of 99% has already been paid.
Share at Rs.133 makes a safe and excellent bet for those investors who have 8 – 10 months view on the stock, which has potential to touch Rs.200 mark. The sector of the company has tremendous growth potential for the next 4 – 5 years. A safe bet at Rs.133.
Source: sptulsian.com
