Complete analysis of Praj Industries📊
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(1/12)
Kindly like & RT for max reach🙏
#StockMarket #stocks #Investment #Investing
@TheFactFindr @FaviloF @icanseeyourpix2 @anand1377 @AdeptMarket @mystock_myview @nid_rockz @harrie007 @kuttrapali26 @KommawarSwapnil @caniravkaria
(1/12)
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Contents
👉About the company & Business model
👉Deep dive into Bio Energy Segment
👉Management Analysis
👉Future Outlook, Tailwinds & Expectations
👉Key risks
👉About the company & Business model
👉Deep dive into Bio Energy Segment
👉Management Analysis
👉Future Outlook, Tailwinds & Expectations
👉Key risks
👉First, lets try to know about the company & its business model 🏬🏬
💳Business has 3 segments
1. Bio Energy (71% of revenue)
👉1G (leaders with 60-65% market share) & 2G Bio Ethanol, CBG, Bio-diesel, Aviation fuel.
👉4 manufacturing facility + 1 R&D center.
👉Expecting segment revenue CAGR at 31% over FY22-25.
(2/12)
1. Bio Energy (71% of revenue)
👉1G (leaders with 60-65% market share) & 2G Bio Ethanol, CBG, Bio-diesel, Aviation fuel.
👉4 manufacturing facility + 1 R&D center.
👉Expecting segment revenue CAGR at 31% over FY22-25.
(2/12)
2. Engineering (20%)
👉Brewery plants, CPES, Water & Wastewater treatment.
👉In Brewery plants, company enjoys 70% market share in India & has established presence in the markets of Africa & South Asia too.
👉Expect 18% segment revenue CAGR over FY22-25.
(2/12)
👉Brewery plants, CPES, Water & Wastewater treatment.
👉In Brewery plants, company enjoys 70% market share in India & has established presence in the markets of Africa & South Asia too.
👉Expect 18% segment revenue CAGR over FY22-25.
(2/12)
3. HiPurity (9%)
👉Provides value & end-to-end integrated solutions to Pharma, Biotech & Wellness Industry like water treatment, modular process, ozone & combi test kits, electro polishing, on-site training etc.
👉Expect 19% segment revenue CAGR over FY22-25.
(3/12)
👉Provides value & end-to-end integrated solutions to Pharma, Biotech & Wellness Industry like water treatment, modular process, ozone & combi test kits, electro polishing, on-site training etc.
👉Expect 19% segment revenue CAGR over FY22-25.
(3/12)
Now, lets dive deep into the analysis of their major revenue contributor, Bio energy⚡️⚡️
👉1G Bio ethanol is produced from sugar containing materials like sugar cane juice.
👉We all know about the Ethanol blending policy so I'm not going to waste your time in that. But, we'll discover the opportunities beyond ethanol blending.
(4/12)
👉We all know about the Ethanol blending policy so I'm not going to waste your time in that. But, we'll discover the opportunities beyond ethanol blending.
(4/12)
👉PRAJ commissioned Asia's first 2G Ethanol Bio-Refinery. 2G is ethanol procurement from non-food feedstocks such as Agri-residues. This process produces lots of by products which have huge industrial applications (Additional income).
(5/12)
(5/12)
👉PRAJ developed RENGAS which produces low cost CBG from multi feedstock like agri & other organic waste for autos.
👉PRAJ is working towards ethanol blending in diesel.
👉PRAJ got approved from Indian Air Force to product Sustainable Aviation Fuel & Premium gasoline.
(6/12)
👉PRAJ is working towards ethanol blending in diesel.
👉PRAJ got approved from Indian Air Force to product Sustainable Aviation Fuel & Premium gasoline.
(6/12)
Now, lets have a look at the management 🧑💼🧑💼
👉Pramod Chaudhari, Executive chairman, IIT Bombay & Harvard business school alumnus.
👉Shishir Joshipura, CEO & Managing Director, BITS Pilani & Harvard business school alumnus. Has 35 years of rich experience. Has served Thermax & SKF India in the past.
(7/12)
👉Shishir Joshipura, CEO & Managing Director, BITS Pilani & Harvard business school alumnus. Has 35 years of rich experience. Has served Thermax & SKF India in the past.
(7/12)
Now, lets have a look at the future outlook, tailwinds & expectations📊📊
👉Increased focus & traction in other verticals like HiPurity, ZLD, CPES to support growth momentum.
👉Better fixed cost absorption going ahead, backed by healthy balance sheet with 0 debt.
(8/12)
👉Better fixed cost absorption going ahead, backed by healthy balance sheet with 0 debt.
(8/12)
👉Sugarcane & sugar alone won't be able to meet target so ethanol is being produced from feed stocks such as cereals.
👉Preponed ethanol blending target to 2025 from 2030 & promoting CBG.
👉PSU are setting 12 2G bio-refineries & PRAJ has bagged orders to setup three.
(9/12)
👉Preponed ethanol blending target to 2025 from 2030 & promoting CBG.
👉PSU are setting 12 2G bio-refineries & PRAJ has bagged orders to setup three.
(9/12)
👉Expect Revenue CAGR of 17% over FY22-25.
👉Expect PAT CAGR of 29% over FY22-25.
👉Expect EBITDA margin to expand going ahead to 11.2% by FY25.
👉Expect ROCE to reach 23.9% by FY25.
(10/12)
👉Expect PAT CAGR of 29% over FY22-25.
👉Expect EBITDA margin to expand going ahead to 11.2% by FY25.
👉Expect ROCE to reach 23.9% by FY25.
(10/12)
Now lets have a look at the key risks⛔️⛔️
👉Change in government policies Ethanol production can impact profitability & capex addition.
👉Delay in pickup of tendering activities in its EPC business could result in lower order inflow from the segment.
(11/12)
👉Delay in pickup of tendering activities in its EPC business could result in lower order inflow from the segment.
(11/12)
👉Any slowdown or policy change in exports markets could affect company's overall performance.
👉Any major fluctuations in exchange rates could impact profitability.
(12/12)
👉Any major fluctuations in exchange rates could impact profitability.
(12/12)
I hope my thread helped you in knowing PRAJ Industries better than before. Please don't forget to join our telegram channel its absolutely FREE & we are doing a lot of hard work here. telegram.me
Thanks for reading,
The Market Learner.
Thanks for reading,
The Market Learner.
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