Going Green: How Praj Industries Gave 3,02,733% Returns

Published by Trinkerr Academy on

If you had ₹1 lakh invested in Praj Industries in October 2002, you could have had ₹32.45 crores today! This multibagger grew by 3027x in 20 years and gave its investors ₹30,27,33,031 in profits and ₹2,17,81,882 in dividends. Here’s a quick look at the company.

🍃 Stock: Praj Industries Ltd.

☀️ The Beginning
Formed in 1983, Praj Industries is an Indian gem in the field of bio-based technologies and engineering. It began its journey as a supplier of ethanol plants. Today, it provides solutions with a focus on the environment, energy and agri-process industry.

The product portfolio is diversified into:
⚡ Bioenergy: 71%
⚡ High Purity Systems: 9%
⚡ Engineering Products: 20%

🌍 Global Presence
It has a presence across the globe with 750+ references in more than 75 countries. It has 4 manufacturing facilities in India with global offices in Thailand, the Philippines and the USA.

👨🏼‍🔬 R&D and Innovation
In March 2022, Praj Industries commissioned India’s first 2nd generation (2G) ethanol plant for Indian Oil at its Panipat facility. Praj Matrix, its R&D centre, is responsible for the innovation of its business units. It has 16 labs and 90+ PhD holders and technologists. The centre is also responsible for improving the 2G technology further. Till FY22, it has filed for 300+ patents, out of which 24 Indian and 60 international patents have been granted.

💰 Stock Value
💵 Praj Industries had 2 stock splits and 1 bonus issue:
📅 On August 17, 2005, the stock split in the ratio of 10:2 (47619 x 5)
📅 On August 17, 2005, a bonus issue in the ratio of 1:1 (47619 x 2)
📅 On July 18, 2007, a bonus issue in the ratio of 1:1 (3,33,333 x 2)

The effective number of shares went from 47,619 to 6,66,666.

💵 On October 11, 2002, the shares of the company were trading at ₹2.10, while they were priced at ₹454.10 as of October 10, 2022.


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