Praj Industries is into manufacturing plant and equipment for Ethanol and Brewery Industry. They are very well recognised for their expertise in both the fields worldwide.

Lets have a look at their financial performance-

                            FY '05-'06    Half year   Full Year             

Tigershark's prognosis is correct. But I tend to stay out from a sector where there are a lot of ifs and buts (variables). No doubt people have made money in this business concept but then they got in early when nothing was priced in is how I would look at the situation.

• Biofuels are green fuels- there is a growing concern for pollution affecting our environment. Global warming is a very very serious issue. If not controlled earth will not remain a place to live in future. People will argue, notihng will happen for another hundred years or so but the thing is action that has to be taken today to make sure after 100 years there is life on earth. Even if oil prices fall down- burning of oil will emmit harmful gases. Europe and America have addressed this problem and have started working on it.
• Oil reserves are not unlimited- there has to be alternatives because the world cannot run without fuel. Again oil wells are not about to run dry in next year or so but alternative fuel capacities have to be installed today not when there will be no oil.
• Dependence on foreign countries for oil-Even if oil gets cheap but still most of the countries will have to import oil and that costs big money. It doesnt harm getting self reliant for your oil needs.

In our country there is not much awareness/concern about such issues but America and Europe are very very serious about this growing problem of oil availability, oil prices , dependence on Gulf countries for oil and environmental issues. They have already started in a big big way to promote biofuels. So, Praj will remain in business as Europe and America  (nas not India) are its main markets.

I think that oil has already created fear in enough minds during the recent times and even if it comes down to 30 level, folks who have already starting envisioning ethanol / alternative energy source wont go back. As Oil is a non renewable resource, sooner or later everybody has to move towards other sources. I therefore think that though high oil price will push other sources of energy but lower oil prices wont pull the same.

I am sure that ethanol thing is here to stay.....but is Praj worth buying at today's valuation?? at 44 PE.

 Praj is close to clinching  2 Big deals in US (U might have noticed its not falling like other midcaps in this carnage) -From unofficial sources  you may consider this news as rumor unless confirmed from authorised sources

Contact: White House Press Office, +1-202-456-2580

WASHINGTON, March 26 / < =yqin =http://yq.search.yahoo.com/search method=post> http://search.news.yahoo.com/search/news/?p=President+Bush - President Bush and CEOs of Ford, General Motors and DaimlerChrysler at the Demonstration of Alternative Fuel Vehicles:

The South Lawn

11:11 A.M. EDT

THE PRESIDENT: I've just spent quite a while talking to our CEOs of American automobile companies. And I was interested in their take on my goal of reducing gasoline consumption by 20 percent over the next 10 years.

I found it very interesting that by 2012, 50 percent of the automobiles in America will be flex-fuel vehicles. That means that the American consumer will be able to either use gasoline or ethanol, depending upon, obviously, price and convenience. That's a major technological breakthrough for the country. If you want to reduce gasoline usage, like I believe we need to do so for national security reasons, as well as for environmental concerns, the consumer has got to be in a position to make a rational choice. And so I appreciate very much the fact that American automobile manufacturers recognize the reality of the world in which we live and are using new technologies to give the consumers different options.

Right now, most of our ethanol is made from corn. But the federal government is spending a lot of money to try to develop new technologies that will mean that ethanol could be made from wood chips or switch grass. Part of that request is embedded in a request to the Congress, and I would hope that Congress would move expeditiously on our plan to reduce gasoline usage by 20 percent over the next 10 years. It's in our national security interest that we do this, it's in economic security interest we do it, and all at the same time, it will help us be better stewards of the environment.

And now I'd like to ask these gentlemen to make a few comments.

MR. WAGONER: Yes, I'd just -- from General Motors' perspective, we very much share the President's vision, and we definitely see a path through to both lower oil consumption, lower amounts of imported oil, and fewer carbon emissions. And obviously, a near-term opportunity that we are moving on right now, as the President cited, is flex-fuel vehicles that are powered by E85 ethanol. There are millions on the road today. As a group, we've agreed to double our production by the year 2010, and then have 50 percent of our production E85-capable by the year 2012. This makes a big difference, and there's nothing that can be done which can reduce the curve of growth in imported oil and actually turn it down like using E85, taking advantage of what's there today.

So we look forward to the opportunity to work closely with the administration and Congress to increase the production of ethanol and to improve the distribution. And on the manufacturer's side, we look very, very much forward to playing our role in that process, as well.

MR. MULALLY: Well, I might add to what Rick said, that we at Ford absolutely are supportive of the President's goal, both for energy efficiency and independence, and to be good stewards of our environment.

One of the neat things about the conversation, again, today, on the continuing dialogue that we've had, is being able to -- the United States system to have options and have flexibility. And the fact that we have ethanol solutions today, hybrids coming along, and plus hydrogen and fuel cells and new battery technology, gives some great options to satisfy our need for flexibility, as well as being good stewards of the environment.

So Mr. President, we appreciate the leadership and we look forward to working with you going forward.

MR. LASORDA: Well, DaimlerChrysler, which includes the Mercedes car group, the Freightliner and other truck divisions in the Chrysler group, we've committed, as well, by 2012, to have 50 percent of our production not only in E85, but biodiesel. This Jeep Grand Cherokee here today is going into production as we speak, being shipped from the factory with B5.

So we've very committed to this, as well, and we think this is the answer for America to lower our dependence on foreign oil.

Thank you.

THE PRESIDENT: One of the things that I think it's important for American taxpayers to understand is that we're using some of their dollars to promote new technologies, and we're working with these CEOs and their respective companies to advance new technologies. They're on the leading edge of technological change, and it's in our interest to help promote these new technologies that are coming to the market.

And I'm excited about the future. I'm optimistic we can meet our goal. I look forward to working with Congress to do so, and I appreciate you all coming today.

    Thank you.

    END
    11:16 A.M. EDT

SOURCE White House Press Office

Praj is a good long term story ,(and as per Market theory -we should get buyers even at higher prices over a period of time !!) only thing I am trying to figure out ,why RJ has sold some part of his holding !!(4.5 L shares).

Broking house, HDFC Securities has maintained buy rating on http://www.moneycontrol.com/india/stockpricequote/engineering/prajindustries/11/37/pricechartquote/marketprice/PI17 - Praj Industries with a target of Rs 562.

HDFC Securities report on Praj Industries:

4QFY07 Results Review

PRAJ reported 111% jump in its top-line during the quarter, on a YoY basis, to Rs 2015 millions. However, on a sequential basis, the top-line jump was a mere 13%.

EBIDTA during 4QFY07 was up 116%(YoY), but on a sequential basis, the company saw a decline of 37%, triggered by a dramatic margin decline of 1083 bps. This was mainly due to the recognition of a higher proportion of equipment technology revenues, in the third quarter. Equipment design & technology and critical equipment supply form PRAJ’s revenue mix, with the latter yielding better profitability for the company.

PRAJ reported a Net profit jump of 158% to Rs 270 millions (YoY), but on a sequential basis, it reported a decline of 19.8%. This sequential decline could be largely attributed to the decline in EBIDTA margin.

Expecting an earnings CAGR (FY07-09E) of 66%, we expect PRAJ to continue banking on capacity additions by energy-sensitive nations. This is because we believe the setting up of ethanol distilleries not only reduces their susceptibility to foreign oil supply vulnerability, but also answers environmental issues. We maintain our BUY rating on PRAJ with a price target of Rs 562(+22.7%)

http://www.moneycontrol.com/india/news/recommendations/prajindustrieshdfcsecurities/buyprajindustri/market/stocks/article/277022 - http://www.moneycontrol.com/india/news/recommendations/prajindustrieshdfcsecurities/buyprajindustri/market/stocks/article/277022

http://www.indiaearnings.com/sub_india/comp_results.php?sc_did=PI17 - Praj Industries  has announced its fourth quarter results. The company's net profit stood Rs 27 crore in the fourth quarter as compared with Rs 10.5 crore in corresponding quarter previous quarter.

Commenting on the results, Pramod Chaudhari, Chairman of Praj Industries says that the company has order of Rs 250 crore this quarter,  while it has a kitty of Rs 750 crore in orders for FY08. He also adds that the acquisition in Brazil will be completed in two to three months.

Excerpts from CNBC-TV18's exclusive interview with Pramod Chaudhari:

Q: Your Q4 margins seem to be a bit under squeezed at about 13.6 versus 24.5. Any reasons for that?

A: It is not that the margins are lower but compared to Q3 they may be a little lower. The third quarter was an aberration and I think our margins for the fourth quarter too is in line with the average margin throughout the year.

Q: How do you see margins panning out for FY08? Could you give us guidance for the sales as well as the margin picture?

A: Our guidance is that sales income will cross the Rs 1,000 crore mark; of course we would like to maintain the same trend in terms of the Ebitda and profitability percentage that we have achieved as an average throughout the year, 2006-07.

Q: What has been the sort of order intake that you have seen this quarter?

A: In the last quarter we have received about Rs 250 crore of orders and now we are carrying a kitty of almost Rs 750 crore orders into FY08.

Q: You are looking for an acquisition in Brazil apparently. When do you expect to close this acquisition and could you give us further details on that front?

A: We have received an okay from the Board. Yesterday, in the Board meeting, we had three important resolutions, which were passed by the Board. One is the acquisition in Brazil, which we hope to conclude in the next two to three months, because Brazil is seeing a second wave of major investments taking place and we feel that this is the right time to enter the Brazilian market. The other one of course is launching a JV in Europe along with Aker Kvaerner, where Praj will be holding a 60% stake, which we hope to conclude in this quarter.

Great feedback, maybe we could have the same things in India a few years down the line.

In Western UP pertrol comes with 5% ethanol mix

My car likes Kingfisher Strong beer - so I always have it in my boot.

EXCLUSIVE STORY

A NGO in Maharashtra had the vision to make our farmers literate about new technologies like fermentation, Apiculture etc allied things. They were also supported by Denmark and France government. Under the scheme few engineers from India were every sent to these countries where they would be trained about these technologies and the same was supposed to spread over in India for farmers by these engineers. In this period of training, they were paid stipend by Denmark and France govt. At the same time NGO would also pay them salaries for their family living in India.

But before engineers were sent for training they were required to sign an agreement that if they leave the organization before completing 5 years from the training engineer will have to pay compensation to organization on the ground that the money spent on them has gone waste.

One such engineer came back from Denmark and France to India. He worked in the organization for 2-3 months and left the organization without paying compensation.

NGO filed suit against the engineer, but unfortunately lost the case in court on some other grounds.

NOW the same engineer is at a very senior position at Praj. And using the same knowledge he got there.

No problem. I just posted what I saw!