Following its stellar performance, smart money is flowing out of Praj Industries even as retail investors are chasing it. While the government’s target on ethanol-blending has fuelled the rally, experts point out that valuations are stretched at current levels. But if the company succeeds in converting on-ground policy changes into profits, its stock can carry on the momentum.
It’s a stock that earned Rakesh Jhunjhunwala a fortune. The billionaire investor, who spotted Praj Industries early on, pocketed a 700x return between 2001 and 2007. The scrip had even caught the attention of American-Indian businessman and ‘ethanol evangelist’ Vinod Khosla back in 2006. Though the company is primarily into making engineering equipment for breweries, sugar mills, and waste-water management, the story that has really lured
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