Praj Industries soars on tie-up with Brazil company

Praj Industries galloped 12.02% to Rs 268 after it formed a joint venture company with Jaragua Equipamentos Industriais, Brazil

Meanwhile, BSE Sensex was down 93.57 points or 0.47% to 20,010.82.

On BSE 33.25 lakh shares were traded in the counter. The stock had an average daily volume of 7.34 lakh shares in the past one quarter.

The stock hit a high of Rs 270 so far during the day, which is a record high. The stock had touched a low of Rs 241.95 so far during the day. The stock hit a 52-week low of Rs 83.55 on 13 December 2006.

The mid-cap scrip had outperformed the market over the past one month till 13 December 2007, gaining 22.07% as compared to the Sensex's return of 0.88%. It had underperformed the market in the past one quarter, gaining 9.97% as compared to the Sensex's rise of 28.84%.

The company's current equity is Rs 36.55. Face value per share is Rs 2.

The current price of Rs 268 discounts Q2 September 2007 annualized EPS of Rs 5.93 by a PE multiple of 45.19.

The joint venture company (JVC), Praj Jaragua Bioenergia S.A., will supply end-to-end solutions for sugarcane juice to ethanol production. Praj Industries will hold 54% in the JVC while Jaragua will hold the balance 46%. Jaragua is a leading Brazilian engineering major and the JVC will provide Praj an entry into the fastest growing ethanol market in the world.

Meanwhile, the company has become a member of Sweet Sorghum Ethanol Research Consortium (SSERC) set up by the International Cops Research Institute for the Semi-Arid Tropics (Icrisat).

As per the memorandum of agreement (MoA) signed between Praj Industries and Icrisat, the company can avail the sweet sorghum research results of Icrisat to refine its bio-ethanol engineering activities. This includes the testing of sweet sorghum varieties and hybrids along with technical know-how on cultivation aspects.

SSERC has been formed to strengthen sweet sorghum research and promote the technology for producing bio-fuel through public-private partnership.

Praj Industries' net profit rose 54.8% to Rs 27.09 crore on 58.1% growth in net sales to Rs 51.37 crore in Q2 September 2007 over Q2 September 2006.

Praj is a global Indian company that offers innovative solutions to significantly add value in bio-ethanol, bio-diesel and brewery plants and related wastewater treatment systems for customers, worldwide. Praj is a knowledge-based company with expertise and experience in Bioprocesses and engineering.