Praj Industries jumped 12.95% to Rs 91.55 at 14:25 IST on BSE after reports of comments by Transport Minister Nitin Gadkari that the government will soon allow automakers to manufacture vehicles running entirely on ethanol.
Meanwhile, the S&P BSE Sensex was up 170.69 points or 0.67% at 25,491.13.
High volumes were witnessed on the counter. On BSE, so far 15.06 lakh shares were traded in the counter as against average daily volume of 1.73 lakh shares in the past one quarter.
The stock hit a high of Rs 92.90 and a low of Rs 81.45 so far during the day. The stock had hit a 52-week high of Rs 117.30 on 23 July 2015. The stock had hit a 52-week low of Rs 54.55 on 23 January 2015.
The stock had underperformed the market over the past one month till 15 December 2015, dropping 4.7% compared with Sensex's 1.13% fall. The scrip had, however, outperformed the market in past one quarter, gaining 2.4% as against Sensex's 1.5% fall.
The small-cap company has equity capital of Rs 35.50 crore. Face value per share is Rs 2.
Shares of Praj Industries surged as it offers innovative solutions for beverage alcohol and bioethanol plants and demand for ethanol would help company receive more orders from customers for ethanol producing plants. Transport Minister has reportedly told his officials to expedite work on allowing automakers to manufacture vehicles running entirely on ethanol so that he can make formal announcement before 26 January 2016. These vehicles can run entirely on ethanol but will also have an option of flex-fuel, he reportedly added. Ethanol is a cleaner option as far as emissions are concerned compared with gasoline.
On a consolidated basis, Praj Industries' net profit fell 80.9% to Rs 4.75 crore on 23.7% decline in net sales to Rs 202.32 crore in Q2 September 2015 over Q2 September 2014.
Praj Industries offers innovative solutions for beverage alcohol and bioethanol plant, brewery, water & wastewater treatment plant, critical process equipment and systems and bioproducts.
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