Systematix, a brokerage house, has advised maintaining a Hold rating on Praj Industries despite the company’s stock price surging approximately 40 per cent since June 01, 2024. They have revised Praj’s target price upward to ₹729, up from ₹607, based on a projected FY26E price/earnings multiple of 30, reflecting optimism around the company’s shift towards sustainable aviation fuel (SAF) and its global expansion strategies in decarbonization solutions.

Praj Industries continues strengthening its position in India’s bioenergy sector, which is supported by a robust order book and expanding interests in starchy feedstock plants and Compressed Biogas (CBG) projects. Systematix underscores key risks, including potential shifts in India’s ethanol blending policy, volatility in raw material costs, and risks associated with technological advancements.

Systematix’s analysis highlights Praj’s strategic alignment with sustainable growth avenues, emphasising its potential for long-term value creation despite recent market volatility.