Find out: Why Indiabulls Sec is betting on Praj Inds

Praj Industries, a small cap company provides turnkey plants and equipments for fermentation and distillation systems used in bio fuels processing, primarily which are ethanol related.

Sabyasachi Ganguly, Analyst, Indiabulls Securities and author of a report on how the ethanol business is likely to benefit Praj Industries, says that Praj is expected to grow 25-30% on a compounded annual growth rate. In an interview with CNBC-TV18, Ganguly spoke on why Indiabulls Sec is betting on Praj Industries. Below is a verbatim transcript. Also watch the accompanying video. Q: Could you take us through this 25-30% CAGR that you are estimating for Praj Industries in particular and your estimates on how ethanol business is going to go forward in the next 3-4 years? A: To set the background, in the last 30 years there have been only two years during which total energy consumption in the world declined, those two years were 2008-09. So despite the decline in total world energy consumption, the consumption of ethanol as fuel increased. Not only ethanol but all the renewable fuels consumption increased. They defined the total energy consumption trend. Also, if you consider the 1990s and the first decade of this century, you will find that in the 1990s whenever the price of oil used to go up the world used to get enthusiastic with ethanol as substitute for petrol and when prices of oil used to go down, things used to go back to square one. But by the turn of this century, the world