Praj Industries Shares Rose ~7%: Check Why

Praj Industries shares surged by up to 7% and touched the day high of ₹790.80 on January 16. The gain in Praj Industries shares came ahead of the Union Cabinet meeting and its anticipated decisions later in the day. According to CNBC Awaaz, a potential move to raise ethanol prices is expected.

Increase in Ethanol Prices

The proposed price increase includes ₹1.82 per litre for B-Heavy Molasses and ₹1.31 per litre for cane juice. Additionally, there is a suggestion to raise the price of C-Heavy Molasses by ₹6.87 per litre, bringing it to ₹56.28 from ₹49.41.

The government is already working toward a target of 20% ethanol blending in petrol by the end of the financial year, with the current blending rate standing at 15.83%. Praj Industries, an engineering firm, is a key player in providing solutions for distillery and brewery wastewater treatment and utilization. The company is also renowned for converting various sugar-based products—such as diluted juice, syrup, sugar, or B-Heavy Molasses—into ethanol.

Praj Industries Outlook

Praj Industries is targeting growth across various sectors, including sustainable aviation fuel (SAF), biopolymers, and energy transition & climate action (ETCA), with plans to triple its revenues by 2030. The company has built robust engineering expertise in modularisation and has established a state-of-the-art advanced manufacturing facility in Mangalore, Karnataka, with an investment of approximately ₹400 crore.

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