Praj Industries has successfully transformed into a better business model. Up till now, the company had only an ethanol-base dependency and then moved into the water and waste-water management systems. If we look at the company's Q1 results, the contribution started taking place into the books of the company. Going forward, it could possibly be 25-30% of the overall pie of revenue in next one-and-a-half to two years.
The company's ethanol story is now gaining momentum. They have been getting newer orders from the international markets on the ethanol businesses and the business is quite robust. The model is scaling up and order book has started getting a bit stronger than what it used to be in last year or so.
Valuations are still above 13-14 price to earning (PE) ratio. If you keep an eye on this company, the market gives you an opportunity in this nervous situation.
