Buy Praj Industries; target of Rs 353: Prabhudas Lilladher

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Praj Industries' domestic ethanol execution remains subdued, but international opportunities are improving, supporting an opportunity pipeline of ~INR 10bn over the next few quarters.
  • The proposed JV with BPCL is expected to provide two revenue streams through project execution and its share of profits from CBG sales.
  • GenX is gaining traction, with approvals from 18 international customers and four operational framework agreements, although revenue contribution is expected to build gradually.
  • Datacentre opportunities provide revenue visibility of INR 5-6bn over the next 12 months, with breakeven expected within the same period.

Thesis Validation Checklist

  • Watch for order inflows, particularly from international ethanol markets, CBG, and GenX equipment and modular projects.
  • Monitor the progress of the proposed BPCL JV and its impact on Praj's revenue and profitability.
  • Track the growth of GenX revenue and its contribution to Praj's overall performance.
  • Keep an eye on the development of datacentre opportunities and their potential to drive revenue growth.