Mumbai, India – In a remarkable uptick, shares of Praj Industries Limited experienced a meteoric 15% surge, reaching an impressive 52-week high at Rs 598 on September 11. This surge is attributed to the substantial anticipation that Praj Industries is set to reap the rewards of the recently launched Global Biofuel Alliance (GBA), unveiled during the G20 Summit by Prime Minister Narendra Modi.
Praj Industries stands at the forefront of this growth wave, commanding a substantial 60-65% market share in the development of ethanol production plants. The GBA, a visionary initiative, has a paramount mission: to expedite the global shift towards sustainable biofuels while diminishing the world’s reliance on conventional fossil fuels. Biofuels, harnessed from renewable sources such as crop residue, plant matter, and municipal solid waste, lie at the heart of this groundbreaking endeavor.
The government has reaffirmed its commitment to achieving a 20% ethanol blending program by 2025, further bolstering the prospects for Praj Industries and the biofuel sector as a whole. As of the latest data from broking firm JM Financial, India has achieved a record-high year-to-date ethanol blending rate of 11.5%. Additionally, JM Financial projects that India, with its existing capacity, is well poised to attain a remarkable 15% ethanol blending rate over the next couple of years.
Ethanol-blended motor fuels, a key component of the biofuel landscape, blend ethyl alcohol derived from agricultural sources exclusively with gasoline, contributing to a cleaner and more sustainable energy mix.
In the wake of this momentous biofuel alliance launch, shares of companies engaged in related sectors have witnessed a notable surge. Notable sugar industry stocks such as EID-Parry, Balrampur Chini, and Dhampur Sugar Mills have recorded gains of 3-4% during today’s trading session.
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