Recent GST Rate Cut To Benefit This Mulibagger Stock, Brokerage Recommends Buy For 38% Gains
Praj Industries Limited's stock for a target price of Rs 520 apiece.
Praj Industries is a small cap Capital Goods company engaged in the businesses of BioEnergy, High Purity Systems, Critical Process Equipment and Skids, Wastewater Treatment and Breywery & Beverages.
The Current Market Price ( CMP) of stock is Rs 379/ share. Stock trading 2 .32 % above the previous close. It opened at Rs 378.95/ share.
Oil Marketing Companies ( OMCs) sell petrol blended with ethanol up to 10% and mandate to increase it to 20% by 2025.
- The government had notified administered price of ethanol in 2014 and for first time during 2018, differential price of ethanol based on raw material utilised for ethanol production was announced by the government.
Prabhudas Lilladher Recommends Buy For Rs 520 Target Price
We believe this is a positive development, which is likely to boost government target of ethanol blending to 20% by 2025.
Thereby, likely to benefit ethanol manufacturers and ethanol plant manufacturers such as Praj Industries."
The stock is currently trading at PE of 31 .6 x/ 21 .9 x/ 20 .9 x FY23/ 24/25 E.
We have Buy rating on stock with TP of Rs 520, valuing it at PE of 30x Sep 24E."
Disclaimer
The stock has been picked from the brokerage report of Prabhudas Lilladher.
Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article.
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By Shubham Kumar Goodreturns source: goodreturns.in Dailyhunt