Praj Industries stock rallies 19% as company reveals plan to triple revenue by 2030

The scrip was trading at an intraday high of ₹804 on the NSE, up 19.02% from its previous close of ₹675.50.

The stock rallied about 17.38% over a year.

The biotechnology firm said that it has been eyeing prospects in various sectors such as energy transition and climate actions (ETCA), biopolymers and sustainable aviation fuel (SAF). Along with these opportunities, the company said, it is expecting to triple its revenue by 2030.

The scrip settled at ₹788, up 10.16% on the NSE.

“The energy transition & climate actions (ETCA) sector which has a global potential and contains segments like blue and green hydrogen, green ammonia and west to energy solutions is expected to drive the growth,” Praj Industries executive chairman Dr Pramod Chaudhari said at a conference on November 21.

He further stated that across the globe, energy companies would have invested almost ₹25 lakh crore in the clean energy sector by 2030. Meanwhile, the oil and gas sector will continue to draw new investments worth ₹21 lakh crore in the next decade.

The expected inflow of global investments in clean energy and oil & gas markets will boost demand for modularised solutions. To cater to this increase in demand, Praj, he said has “developed strong engineering capabilities in modularisation and has set up a dedicated advanced manufacturing facility at Mangalore in Karnataka with an investment of about ₹400 crore.”

The manufacturing facility in Karnataka spans 123 acres of land and, when operating at optimum capacity, can generate annual revenues in the ₹2,000 to ₹5,000 crore range, Dr. Chaudhari added.

“The CORSIA agreement for the use of Sustainable Aviation Fuel (SAF) has opened a door to new opportunities for Praj as India has set the target of blending 1% by 2027 and 2% by 2028. Whereas, the EU and USA have kept the SAF blending target of 6% and 10% respectively. India’s first commercial passenger flight powered by indigenously produced SAF from sugarcane molasses successfully flew from Pune to New Delhi. Air Asia, Praj and Indian Oil came together for this successful attempt”, Tech and Engineering President at Praj, Ghanshyam Deshpande said.

The biotech firm is also eyeing opportunities to boost its share of exports from 29% today to 50% by 2030.

About Praj Industries

Praj Industries is a biotechnology company that has, over the last 40 years, focused on the environment, energy, and agri-process industries. The firm has more than 1,000 customer references, spanning over 100 companies across six continents.

As of Friday, November 22, the company has a total market cap of ₹13,455.12 crore, according to the NSE.