Praj Industries share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Praj Industries share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned Praj Industries share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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Praj Industries: Company Profile
Praj Industries started off as an entrepreneurial venture three decades ago, is today India’s most successful company in the field of bio-based technologies and engineering with a presence all over the world. The zeal for working toward making the world a better place has stayed with it till today and will continue to do so.
With a humble beginning as a supplier of ethanol plants, today Praj is a globally leading company with a bouquet of sustainable solutions for bioenergy, high purity water, critical process equipment, breweries, and industrial wastewater treatment. Headquartered in Pune, India, Praj has spread its presence across the globe with 1000++ References in 100+ countries across all 5 continents.
Around 80% of the ethanol produced globally is used as a vehicular fuel. With the increasing demand for cleaner fuels and an attempt to reduce dependence on crude oil, more than 60 countries in the world are at different stages of ethanol blending mandate.
High Purity Systems
Addressing the pharmaceutical, biotech, cosmetics, and wellness sector, Praj Hipurity Systems, a wholly-owned subsidiary, is engaged in providing high purity water and hygienic systems to the pharma industry.
Critical Process Equipment and Skids
This vertical serves a wider sectoral requirement for high-end equipment & systems finding applications in the oil & gas, petrochemical, fertilizer, and chemical industry.
Praj offers integrated wastewater treatment systems and has an established name in the industrial sector with a wide range of solutions. This vertical addresses industrial applications for high-quality water.
Brewery & Beverages
This synergistic business came into being in the early 90s. Right from conceptualization, technology, design, and plant engineering up to project installation and commissioning – Praj offers complete solutions backed by expertise and experience.
Share Holding Pattern
Praj Industries Share Price Target 2022
As a built-up to COP 26 Glasgow summit scheduled in Nov 2021, strong momentum is gathering in the “race to zero” campaign. There is increasing pressure on nations around the world to curb GHG emissions. India has reiterated its Nationally Determined Contributions (NDC) honoring the Paris climate summit commitments. The pursuit of a clean green environment will continue to be a driver for the biofuels industry.
Volatility in international crude prices and exchange rates has triggered urgency for the country to renew its focus and efforts in the area of energy self-reliance. The decision of advancing the 20% blending target by 5 years from 2030 to 2025, is expected to create the opportunity for additional 10 billion liters per annum of ethanol capacity. Decisions of opening an expanded range of feedstock, especially starchy, will encourage ethanol production across the country.
Ecosystem development currently underway is expected to open up the potential of the CBG opportunity. Commissioning of initial commercial-scale CBG projects in the immediate future will demonstrate end to end functioning of the value chain. This is expected to instill confidence in prospective developers, paving way for the realization of CBG plants. The engineering and Hi Purity businesses continue to expand their horizons. PHS business will continue to focus on opportunities in complex injectable, fermentation, and Bio-pharma space.
CPES business will focus on enhancing its reach with global cleantech, and green tech companies to position itself as their strategic supplier. With water as an essential resource, Praj Industries ZLD solution will continue to find increasing acceptance for the treatment of industrial effluent. While signs of economic recovery are evident, the business environment is still experiencing challenges owing to restrictions on mobility, high commodity prices, uncertainty over sustained availability of labor, under-vaccinated population.
These challenges have the potential to impact the financial performance of businesses. Praj Industries stays cautiously optimistic as it learns to effectively deal with these testing times. Opportunities for its BioMobilityTM platform that offers technologies for a variety of biofuels are emerging beyond surface transportation. As a call for curbing GHG emissions gains momentum in aviation as well as the marine sector, biofuels are poised for scripting a very interesting future.
A new wave is now ushering in the industrial revolution viz. Industry 5.0 Version 2. Bioeconomy is envisaged as an integral part of industry 5.0 acceding due importance to sustainability in all business endeavors. The emphasis is going to be on deeper penetration of green energy in the overall energy basket and adoption of green products & materials. This clearly demonstrates mainstreaming of the bio-economy as part of the global economy. By considering all these factors, Praj Industries share price target for 2022 is Rs 455.
|Praj Industries share price target 2022|
Also read: SRF share price target.
Praj Industries Share Price Target 2023
The domestic Bioenergy sector has seen significant momentum with several positive and structured measures announced to boost ethanol consumption in India. Currently, the annual ethanol production capacity in India is around 6.5 billion liters. The majority of the ethanol production is based on the sugary feedstock mainly cane molasses and a small but growing proportion of starchy feedstock. Oil Marketing Companies (OMCs) have contracted about 3.3 billion liters for the 2020-21 marketing year, including about 0.4 billion liters from the starchy feedstock.
This would enable India to have ethanol blending of 8.5% for the ethanol supply year Dec 2020- Nov 2021. India has recently announced the advancement of the 20% ethanol blending target by 5 years, from 2030 to 2025. This is expected to create an opportunity for additional 10 billion liters per annum of ethanol capacity. The country’s recent move to allow the direct sale of ethanol as a fuel for compatible automobiles is further expected to support the higher ethanol demand. This will significantly create and build opportunities for ethanol plant capacity expansion.
Currently majority of the ethanol production in the country is dominated by three states namely Uttar Pradesh, Maharashtra, and Karnataka that produce ethanol using sugary feedstock. In a significant move to encourage countrywide ethanol production, India expanded the basket of feedstock with the inclusion of starchy feedstock. Several enabling factors such as interest subvention for projects, five-year buying visibility, upward price revisions, quick environmental clearance, etc are introduced to attract investments in the sector.
States have also realized that this policy shift enables the potential for enhancing farmers’ income and employment generation. States are taking proactive steps to attract investments for ethanol plants based on starchy feedstocks. For example, state of Bihar and Chhattisgarh have already introduced a regulatory framework to attract investments to enhance ethanol production capacities.
As starchy feedstock is available across the nation, it will help build up a robust ecosystem for the nationwide production of ethanol. The ethanol industry structure in the country is undergoing a radical shift with changes across dimensions of ownership, feedstock, and geographical location for the production of ethanol. Praj Industries is witnessing increasing inquiries for ethanol plants based on starchy feedstock.
This year, Praj Industries also witnessed increasing traction from customers to set up B heavy molasses and sugar syrup-based ethanol plants. This demand is spurred by good sugarcane crops and demand-supply imbalance in the sugar sector. Producing ethanol instead of sugar, directly from cane juice syrup and B heavy molasses will ease the imbalance in the sugar sector besides boosting ethanol production. Praj Industries unique BioSyrupTM technology solution enables year-round ethanol production using syrup as feedstock and it is attracting a lot of interest from its customers. Praj Industries share price target for 2023 is Rs 520.
|Praj Industries share price target 2023|
Also read: HDFC Bank share price target.
Praj Industries Share Price Target 2024
On the international front, Praj Industries witnessed traction for pharma-grade alcohol due to a sudden increase in the need for different types of sanitization. Praj Industries rose to the occasion to cater to this spike in demand and help customers in different markets to produce sanitizers. Praj Industries received a contract for its single largest pharma-grade alcohol facility for a customer in the US.
Praj Industries is building further on the initial success and have bagged four more orders. With the US rejoining the COP 21 Paris Summit agreement, demand for renewable energy and biofuels in specific is expected to revive. Just like California few other states are in the process of adopting the Low-Carbon Fuel Standard (LCFS). Praj Industries solutions for ethanol based on starchy feedstock are attracting customers in different markets. Praj Industries is building starchy feedstock-based plants in Canada and Mexico for two leading producers.
In Europe, Praj Industries expects opportunities for 1G ethanol projects will come from value-added brownfield projects by way of up-gradation and modernization of existing plants. Several economies in the Asia Pacific and LATAM are slowly recovering from the pandemic crisis. The deep impact on these economies is leading to the deferment of new investments. As different nations emerge along different paths of their economic recovery curve, developments are expected on the positive side in due course of time. By considering all the above-mentioned factors, Praj Industries share price target for 2024 is Rs 615.
|Praj Industries share price target 2024|
Also read: HDFC Bank share price target.
Praj Industries Share Price Target 2025
India currently imports 45% of natural gas which is further processed for producing compressed natural gas (CNG) that is extensively used in meeting India’s energy demand. India is making concerted efforts to improve the share of gas in its energy mix to 15% by 2030, from 6% currently. CBG is a high octane renewable gaseous fuel produced by processing bio-based feedstock such as press mud, agricultural residue, etc.
This not only helps in energy self-sufficiency but also helps in the reduction of carbon intensity, especially in the transportation and industrial sectors. Post-launch of the SATAT program that envisages the setting up of 5000 CBG plants over a period of five years; efforts are underway to develop the ecosystem. Offtake mechanisms, funding programs, and co-product certification are underway.
Praj Industries has commissioned its CBG demo plant based on agriculture waste and other organic wastes at Praj Matrix. This plant was inaugurated by Shri Prakash Javadekar, Union Minister of Environment, Forest and Climate Change in Nov 2020. The plant deploys Praj’s RenGasTM technology that utilizes a proprietary microbial consortium for converting feedstock such as Agri residues and press mud to CBG. This plant will be used to test, improve and optimize the technology further.
In November 2020, Praj Industries entered into a non-binding MoU with the Ministry of Petroleum & Natural Gas for providing technology support to CBG projects under SATAT Scheme. Praj Industries is in process of commissioning India’s first integrated bioenergy complex in the northern part of the country. In addition to 65 KLPD ethanol production capacities using sugary feedstock, this plant also comprises of CBG plant that will process 200 TPD of Press Mud.
Praj Industries is also contracted to build a rice straw for the CBG project in Uttar Pradesh. This project has the potential to save up to 15000 MT of CO2 emissions per year. By considering how big the market will be in the future and the growth opportunities the company has to grow its business in the future, Praj Industries share price target for 2025 is Rs 730.
|Praj Industries share price target 2025|
Also read: Paras Defence share price target.
Praj Industries Share Price Target 2030
In order to promote the usage of biofuels in the transportation sector, Praj Industries has entered into MoU with the Automotive Research Association of India (ARAI) to jointly drive the application development of advanced biofuels. Through this collaboration, Praj and ARAI are developing technologies to propagate the use of biofuels in a variety of transportation applications. Praj Industries is making steady progress in ethanol blending with the diesel program.
Praj Industries strategy has always been to expand its business horizons in the bio-economy by leveraging its innovative, technology solutions. Praj Industries has now expanded its offerings in bio-economy namely, renewable chemicals and materials with the Bio-PrismTM portfolio of technologies. The company is developing different molecules and biopolymers that are sustainable alternatives to products made from fossil resources. Praj Industries has identified specific growth industries such as Bio-plastics, Cellulose–Lignin refinery products, Specialty chemicals, Agri-supplements, and Bio-industrial products.
These renewable products have applications in various industries that include paints and coatings, automotive, packaging, furnishing, construction, agriculture; nutraceutical, and food. The company is soliciting strategic partnerships across the value chain for joint development and commercialization of this potential.
Praj Industries has also joined hands with the Institute Of Chemical Technology, Mumbai (ICT) for developing innovative solutions for the process industry. As part of the overarching MoU, Praj and ICT will jointly work towards promoting higher education and research in the areas of Process Development, and the Development of novel reactor designs for biochemical/catalytic processes. Various high potential technology development projects will be jointly undertaken that would be governed by separate project-specific MoUs.
Recently the Company has achieved another breakthrough in producing “Bio-bitumen” based on lignin, eco-friendly renewable material for road construction. Lignin is one of the co-products resulting from the 2G ethanol plants, paper making, and also from CBG plants. Praj has developed a proprietary process (under patenting) to convert the crude lignin into Biobitumen which has the potential to replace this fossil-based bitumen.
The Netherlands-based Circular Biobased Delta (CBBD), one of Europe’s premier consortia to promote bio-economy, has approved Praj’s Bio-bitumen samples that will now be tested for scale-up in Asphalt on a Dutch test strip on the road.
Till date, the Company has been granted 24 Indian patents and 60 international patents and has filed over 300 international patents till date. By considering the future growth opportunities for Praj Industries and the financial stability of the company, Praj Industries share price target for 2030 is Rs 2,200.
|Praj Industries share price target 2030|
Also read: Indian Infotech share price target.
Praj Industries Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Share Price Target|
|Praj Industries share price target 2022||Rs 455|
|Praj Industries share price target 2023||Rs 520|
|Praj Industries share price target 2024||Rs 615|
|Praj Industries share price target 2025||Rs 730|
|Praj Industries share price target 2030||Rs 2,200|
Frequently Asked Questions
Is it good to invest in Praj Industries?
Yes, Praj Industries is a good company in terms of financials and fundamentals. You can invest in Praj Industries for long-term gains.
Is Praj Industries debt-free?
Yes, Praj Industries is a debt-free company.
What is the target price for Praj Industries?
Praj Industries share price target for 2022 is Rs 455, Praj Industries share price target for 2023 is Rs 520, Praj Industries share price target for 2024 is Rs 615, Praj Industries share price target for 2025 is Rs 730, and Praj Industries share price target for 2030 is Rs 2,200.
Is Praj Industries good for long-term investment?
Yes, Praj Industries is good for long-term investment. The company has shown a good profit growth of 31.29% over the past 3 years, the company is virtually debt-free and the company has a good cash flow management; CFO/PAT stands at 1.26.