Book profit in Praj Industries, says SP Tulsian

SP Tulsian, sptulsian.com advice traders to book profit in Praj Industries.

Tulsian told CNBC-TV18, “If you see the present scenario the open market price of ethanol is ruling way above the contracted price with the oil marketing companies at Rs 27 while in the free market ruling at Rs 31-Rs 32 per litre. I don’t think except for sugar mills anyone really will be keen to set up the distillery.”
He further added, “Praj Industries is mainly the capital equipment supplier for distillery so there is a general feeling than everyone will rush to set up the distillery in the times to come is not the case because from where you will get the molasses to process and make it into ethanol and you don’t have any other route. You can’t really fall back on the food grains to make ethanol which is very expensive and use only for the portable purposes not for industrial use. I think this has a over exuberance for the company and definitely the beneficiary will be more seen for the integrated sugar mills. Those who have distillery with them so I will be taking the optimistic view on stocks like Balrampur Chini, Bajaj Hindusthan, and Shree Renuka Sugar and won’t be keeping. Profit booking will be advised in case of Praj Industries.”