BUY with the price objective of Rs 250 representing a potential upside of 166% from the CMP of Rs 94.
Over the period FY13-16, the performance of Jain Irrigation Systems Ltd (JISL) has been less than exemplary. It was marred by forex losses and high interest payments, which led to PAT losses in FY14. The two years that followed were also marked by lacklustre growth due to the droughtlike situation prevailing in India and Maharashtra in particular. However, we believe that the fortunes of the company are on the verge of a turn-around, given the good monsoon and the government impetus to kick-start the economy. Further, the infusion of ~Rs 800 crore of capital should help lower interest costs and improve the health of the...