Praj Inds jumps on buzz of hike in ethanol blending in petrol

Praj Industries jumped 5.08% to Rs 71.30 at 15:05 IST on BSE on reports the government has decided to raise the mandatory level for blending ethanol in petrol to 10% from 5%.

Meanwhile, the BSE Sensex was down 144.99 points, or 0.58%, to 24,960.52.

On BSE, so far 13.28 lakh shares were traded in the counter, compared with an average volume of 8.82 lakh shares in the past one quarter.

The stock hit a high of Rs 73.55 and a low of Rs 67.85 so far during the day. The stock hit a 52-week high of Rs 79.15 on 5 June 2014. The stock hit a 52-week low of Rs 30 on 2 August 2013.

The stock had outperformed the market over the past one month till 20 June 2014, rising 8.65% compared with 2.99% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 47.50% as against Sensex's 15.48% rise.

The small-cap company has an equity capital of Rs 35.49 crore. Face value per share is Rs 2.

According to reports, the government has decided to raise the level of mandatory blending of ethanol in petrol to 10% from 5%, as a part of measures for the revival of the sugar industry.

Praj Industries undertakes implementation of projects for installing plants based on a variety of sugar based feed stocks for 1st generation ethanol production. Ethanol is produced by the fermentation of molasses. Molasses is a by-product of the refining of sugarcane into sugar.

On a consolidated basis, Praj Industries' net profit rose 24% to Rs 20.77 crore on 31.3% increase in net sales to Rs 349.43 crore in Q4 March 2014 over Q4 March 2013.

Praj Industries offers innovative solutions to significantly add value in bio-ethanol, alcohol, brewery plants, process equipment and water and wastewater treatment systems for customers worldwide.

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