More than Praj investors , the Sugar industry is very much worried and so also the investors in Sugar companies and tomorrow the sugar industry association meeting with PMO.

The sugar companies have put a lot of money in making Ethanol from sugarcane as it is profitable to make ethanol than sugar from sugarcane.

Govt maintains consistently since last 3 days that it is only a temporary pause for ethanol from sugarcane , but all other windows remain open for making Ethanol 1G from Grains, Maize , molasses and 2G ethanol from agri residues to ensure that ethanol blending program is not getting hampered in anyway. Govt is also ready to supply maize for 1G ethanol to ensure that Ethanol blending program is not derailed

So , i don’t see any impact on financial performance and or order in- flow for Praj

Thanks for your opinion…I feel that the indian aviation space is very exciting now and fares will stay high…There is an issue with airbus neo engines that are being forced to go through new checks so this has and will keep a lot of planes out of action…Luckily for Spicejet it doesnt seem to have Airbus only Boeing and Dash etc.
Also I think Spicejet comcentrates a lot on the more secondary and tertiary cities so will tap nicely the lower middle class travel…
Its a risk at this price but I think the shares have chance to go much higher especially with the oil price weakness .

Hi @tpatel

Thanks for the super useful information and case source…!!
We should keep a close tab of the developments here.

Overall I feel the industry has consolidated for last couple of years and if the recent trends are to sustain then there could be some recovery and then going forward if the judgement on duties is favourable then it all could finally play out…and Avanti has been a good performer even during the difficult phase of Industry.

Also, one thing that I want to bring to your notice…

My interpretation is that the subsidies that these countries are offering is more than 2% which is higher than the limit allowed by US for imports coming from developing nations…and the final CVD & ADD will be decided and levied based on the case proceedings.

Regards,
Yogansh Jeswani
Disclosure: Invested