Praj Industries Hits 52 Week High On The Launch Of The Global Biofuel Alliance

11 Sep 2023 , 03:25 PM

Praj Industries Limited’s shares surged by 15 %, reaching a 52-week high of Rs 598 on September 11, following the launch of the Global Biofuel Alliance (GBA) during the G20 Summit by Prime Minister Narendra Modi. Praj Industries holds a substantial market share of 60-65 % in the development of ethanol plants, solidifying its position in the biofuel sector.

The GBA aims to accelerate the global transition to sustainable biofuels, reducing dependence on traditional fossil fuels. Biofuels are renewable energy sources derived from biomass, including crop residues, plant waste, and municipal solid waste.

The Indian government has set a target of achieving a 20 % ethanol blending program by 2025. Year-to-date ethanol blending in India has already reached a record high of 11.5 %.

JM Financial suggests that with the existing capacity, India can attain a 15 % ethanol blending rate in the next few years. Ethanol blended motor fuel consists of ethyl alcohol derived from agricultural products, blended exclusively with gasoline.

The launch of the GBA had a positive impact on related stocks, with major sugar companies like EID-Parry, Balrampur Chini, and Dhampur Sugar Mills witnessing a 3-4 % increase in their share prices during the trading session.

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