Praj Industries - 522205

Name of Company	Praj Industries
BSE Code	522205
NSE Code	PRAJIND
ICICI Code
Established
My Take	Like
Headquarters	Pune
Promoters	Pramod Chaudari (An IIT B alumni)
Story	This is a knowledge based company with expertise in bio-processes and engineering. Main stay of this company is bio-fuels esp ethanol. Geographical presence in 40 countries with direct presence in India, Thailand, Netherlands, USA, Brazil and UAE. Company could use the 500 Cr reserves for acquisitions and building the business. We don't know the revenue growth would come, but when it comes, the growth would be huge. New innovations are important growth engines. The Praj-Matrix innovation center in Pune is working for that reason.
Sector	Energy/Bioprocessing
Sub-sector	Bio ethanol, waste-water treatment, water treatment, brewery plants
Website	http://www.praj.net/
Positives	Shares held by major players- Vinod Khosla (4%), Rakesh Jhunjhunwala (6%), major MF's (SBI, LIC, Credit Suise, Tata Capital). Price near the 52 week low of 70.10.Can expect a dividend yield of around 2%. Debt free company (see the company makes no interest payments). Reserves have been building up – FY10 reserves at 495 Cr, it is close to the 600 Cr revenue. NPMs greater than 15% from FY08. Reserves divided by total shares is greater than Rs. 25.
Negatives	23% promoter shareholding, but none pledged. Revenue has been 600 to 775 Cr between FY07 to FY10 (4 years). Q1 FY11 revenue was reported at 93 Cr which is very less compared to earlier quarters. FY11 Q1 margins were at 11%.
Peers
News
Price @ blogged	70.35(19-Oct-10)
Cost of company	1300 Cr market cap for a 113 Cr FY10 NP which is 11.5 times. FY11 revenues and profit may be less than FY10 by initial figures.