Praj Industries Shares Rise on GBA Launch
Shares of Praj Industries Limited rose 15% to hit a 52-week high of Rs 598 on September 11, 2023, on expectations that the company will benefit from the launch of the Global Biofuel Alliance (GBA).
The GBA is a public-private partnership launched by the Government of India on the sidelines of the G20 Summit. The alliance aims to accelerate the transition to sustainable biofuels and reduce the world’s dependence on traditional fossil fuels.
Biofuels are renewable energy fuels derived from biomass like crop stubble, plant waste and municipal solid waste. They are a cleaner and more sustainable alternative to fossil fuels.
The GBA is expected to lead to increased investment in the biofuels sector in India. This would create new jobs and boost the Indian economy.
Praj Industries is a leading provider of ethanol production technologies and services. The company has a 60-65% market share in developing ethanol plants in India. This gives it a strong position to benefit from the GBA.
The company also has a proven track record in the ethanol industry. It has successfully developed and commissioned ethanol plants in India and other countries.
Praj Industries is well-connected with the government and other stakeholders in the biofuels sector. This will help it to secure contracts and partnerships under the GBA.
The rise in Praj Industries shares is a positive sign for the company. It reflects the confidence of investors in the company’s future prospects.
The company is expected to continue to grow in the coming years, driven by the increasing demand for biofuels in India and the world.
In addition to the factors mentioned above, the rise in Praj Industries shares could also be attributed to the following:
- The government’s renewed commitment to the 20% ethanol blending program by 2025.
- The increasing availability of feedstock for ethanol production, such as crop stubble and sugarcane juice.
- The declining cost of ethanol production technologies.
Overall, the launch of the GBA is a positive development for the biofuels industry in India. It is expected to create new opportunities for companies like Praj Industries.
Related News
- 22 Sep
NBCC shares trade higher on Rs 100 crore work order from SAIL
NBCC shares were trading 3 percent higher on September 22 after the company announced having bagged a work order worth Rs 100 crore from SAIL. This is the fourth order-win announced by the company in this month, the total value of the same being Rs 450 crore. NBCC is a public sector undertaking engaged in the business of construction and real estate development. The company specializes in providing project management, consultancy and engineering services for civil construction, infrastructure development, and real estate projects.
- 22 Sep
Glenmark Pharma stock falls on stake sale in Glenmark Life Sciences
Glenmark Pharma stock fell after the company announced it would sell a 75% stake in its subsidiary Glenmark Life Sciences to Nirma. Analysts expect the stake sale to benefit Glenmark Pharma, as it will transition from a net debt position to a cash surplus position. This is expected to have a positive impact on the company's return ratios over the next two to three years.
- 22 Sep
Berger Paints Shares Hit 52-Week High After Turning Ex-Bonus
Berger Paints shares surged 6% to hit a 52-week high after turning ex-bonus on the record date for the issue of bonus shares in the ratio 1:5. The company posted a net profit of Rs 326.3 crore in the April-June quarter of FY24, up 39% year-on-year, on revenue of Rs 2,739.7 crore, up 10% year-on-year. The company expects to get net cash positive by the end of this fiscal year and expects to end the year with double-digit revenue growth on strong demand outlook.
- 22 Sep
Market Update for September 22, 2023
IdeaForge Tech up 3.4% on order RVNL up 3% on highway MoU JSW Steel up 0.4% on sale ICICI Lombard down 1.6% on CEO exit ICICI Bank down 1% on healthcare investment NHPC up 1.3% on extended additional charge Kalyani Forge up 3.2% on new MD IRB Infra up 2.5% on road project closure
- 22 Sep
Lux Industries Shares Down 3% After Income Tax Raid
Lux Industries shares fell 3% on September 22 after news emerged that the Income Tax department had conducted searches at the company's premises in Kolkata and alleged a tax evasion of Rs 200 crore. The company has confirmed the searches and is extending full support.
Leave a Reply