Government’s announcement of spending Rs 50,000 crore on new irrigation scheme is helping Jain Irrigation to have boost in share prices.
A multinational organisation based in Jalgaon, India, Jain Irrigation manufactures a number of products, including drip and sprinkler irrigation systems and components, integrated irrigation automation systems, PVC and PE piping systems, plastic sheets, greenhouses, bio-fertilizers, solar water- heating systems, solar water pumps, turnkey biogas plants, and photovoltaic systems. JISL is also into Food Processing. The equity shares and FCCB of the company listed in BSE as JAINIRRIG and NSE as JISLALQS and also the same in Luxembourg.
Jain Irrigation Systems Ltd, a Midcap company is incorporated in the year 1986. Agriculture is the traditional activity of JAINS and it became the basis for its corporate initiation. It operates in Agriculture, Horticulture and Lives sector. The major revenue segments are Micro Irrigation Systems which contributed 38.16% of total sales, pipe fittings contributed 36.39% of total sales. Other segments also contributed relatively low from the first two segments. For the quarter ended 31-March-2015, the company has reported a Standalone sales of 1515.10 Cr. up 84.32% from last quarter sales of Rs.822 cr and up 1.90% from last year quarter Sales of Rs. 1353.98 Cr. The company has reported net profit after tax of Rs. 82.56 Cr. in latest quarter.
JISL got good FIIs which comes up to 41.50 % share holdings, and promoters take up 28.6% of share holdings. The general public holdings come upto 12.94 % of share holdings. The Sales figure shows a good trend for the last 12 quarters. It has marked up to 84.32% for quarter ended March 2015. The net profit though shows a negative sign for the last quarter, its comparatively high for the last 12 quarters trend, it shows a positive move.
The JISL stock performance shows as a top gainer for the period amongst the peers. It marks at 12.98% for the first quarter 2015 amongst the peers. But, the trend chart shows that the stock has been struggling to regain to the last year 2104. It has come down to 72.50 from 108.00. The current ratio marks as 2.32 of peer average which shows the company has good stock of current assets. The debt to equity ratio is also high among the peers. This shows the debt free nature of the company.
Krishi Sinchai Yojana has moved up to 5 % intraday trading after the announcement that Government is ready to spend INR 50,000 crore on new irrigation scheme. It’s a big boost for agriculture sector. The investors should be ready to focus on this stocks as the new approvals by the Cabinet, may take high to the previous year valuation. The company is also expecting an increase in revenue from food processing in the next two quarters. The stake sale can increase to a good percentage with the subsidiary activity of food processing.
The stock overall shows a hold-on position with a good price hike.