The target price for Praj Industries is set at ₹751, with the current market price standing at ₹581.30. The management of Praj Industries recently provided insights into the progress of the GenX facility and the growth prospects across its business verticals at a conference.
Orders for the GenX facility are expected to kick off in Q1FY26, with the facility projected to generate peak revenue of approximately ₹1,000–2,500 crore per annum. Despite challenges facing the CBG sector in terms of operational and economic viability, Praj remains positive about its prospects, attributing its confidence to its multi-feedstock technology. The potential imposition of reciprocal tariffs by the US is not likely to significantly impact Praj’s ultra-low carbon ethanol prospects.
On the international front, Praj continues to see an uptick in inquiries for 1G ethanol from markets such as Brazil, Argentina, and Panama. Domestically, ethanol blending reached 19.6% in January 2025, with the management anticipating the next phase of order bookings to be driven by the expected mandate for 25% ethanol blending.
In the long term, Praj Industries remains a promising investment opportunity due to its leadership in domestic ethanol projects, substantial market share in engineering exports driven by ETCA, a robust pipeline of SAF projects in the US and domestic CBG initiatives, a focus on emerging technologies like 2G ethanol and biopolymers, and improving margins supported by an increasing share of exports and services.
The article was published on March 24, 2025.
