Buy Praj Industries , says Deven Choksey, MD of KR Choksey Securities.

Choksey told CNBC-TV18, "Praj Industries is very successfully transformed into a better business model. Up till now only the ethanol base dependency was there and from there they already started moving into the water and waste water management systems."

He further added, "If you look at Q1 results, the contribution has started happening into the books of the company and going forward it could possibly be 25-30% of the overall pie of the revenue as far as Praj is concerned in next 1.5-2 years. So from a perspective of looking at this company and the ethanol story is now gaining momentum, they have been getting newer orders from the international markets on the ethanol businesses, so from that point of view also the business is quite robust, the model is scaling up, the order book has started getting a bit stronger than what it use to be in last year or so."

"Valuation wise it is still limitedly above other midcaps, it is still above 13-14 kind of a price earning ratio but I think if you keep an eye on such kind of company the market give you an opportunity in nervous kind of a situation and in such kind of times you could buy company like Praj in your investment portfolio."

source: moneycontrol

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