Pick of the Week: Praj Industries

FOR SHORT TERM MEDIUM TERM

BUY : PRAJ IND

Equity : 36.67 Cr, BSE Code : 522205, CMP : 115.50

PRAJ was established in 1984 with the objective of providing cutting edge solutions to the DISTILLERY INDUSTRY. India was the starting point. Sugar industry in India is the backbone of the rural economy. And, the future of this industry lay in value addition by way of co-products like Alcohol. Quality of Alcohol was the keyword. Praj focused on quality of spirit with the introduction of innovative technologies in fermentation, distillation and wastewater treatment.

Praj applied classical mass and heat transfer theory for more efficient separation of impurities during distillation with the introduction of Bubble cap trays and Hyper stat Grid Trays. In 1991, Praj established an R & D Center. Many new systems have been developed in this R & D Center, resulting in to seven patents. Praj's expertise in fermentation and distillation was complemented by its expertise in wastewater treatment solutions. In 1992 Praj's Sprannihilator System was given an award by the Govt. of India, Ministry of Chemicals & Fertilizers. In 1993, Praj also introduced Brewery Engineering, Plant & Equipment. In 1994, Praj went public. Its maiden IPO was oversubscribed seven times. Praj is listed on the BSE and NSE in India. Around this time, Praj also branched out in the international market with orders from Indonesia and Philippines

Today, Praj offers many more solutions for distillery and brewery wastewater treatment and utilization. PRAJ has also spread it's reach beyond India to over 35 countries ... across 5 continents... with over 350 references. Praj is perhaps the world's single largest supplier of molasses based distillery technology, plant and equipment. Praj has also diversified its range of solutions. Fermentation systems include technology packages for multiple feedstock including cane-molasses, cane juice and filtrate, starch based raw material like corn, sorghum , wheat, tapioca, tropical sugar-beet and many more. Today, Praj's operations cover three continents including Asia, Africa and South America through its own offices and to other alcohol/beer producing countries through its international operations out of India. Praj manufacturing facility is accredited with ISO 9001-2000 and ASME 'U' & 'H' stamp for pressure vessels and heating boilers. Facility for metalworking in Stainless Steel, Copper, Hostelry and higher alloys to international standards including TEMA, DIN, Ad Merk Blotter, BS and IS. The Quality Assurance cell pursues stringent testing at various stages of procurement and production. For every job, a Quality Assurance Plan is drawn up and all inspection is carried out in accordance with this plan. Approved by most leading Engineering Consultancies, the manufacturing facility is well connected by 'all-weather' roads and is located 180 kms from the Port of Mumbai. Sales and NP for year ended 07-08 were 701.6 Cr & 148.1Cr. Sales and NP for latest Quarter 154.8Cr & 24.8Cr. On YOY basis NP has increased by 71% Dividend during year ended 07 08 was 99%