Jain Irrigation Systems Ltd. share price target

Revenue fell by 0.5% to Rs. 1417.82 Cr in Q3FY17 when compared to the previous quarter. On the other hand, it grew by 4.52% when compared with Q3FY16.

Jain Irrigation Systems Ltd (JISL) reported healthy Q3FY17 results, beating the demonetisation woes. Net sales increased by 4.6% yoy, in the challenging demand environment. EBITDA and PAT increased by 27.7% yoy and 126.7% respectively.

Enhanced Business Outlook and Bulk Orders in Hand to Drive Business: There has been remarkable performances during Q2FY17 as against same quarter period in FY16 wherein the company seen 11.3% growth. EBITDA margin hasimproved by 99 bps from 12.1% to 13.1% and PAT margin grew to 1.9%. From half yearly performance perspective, the company has achieved revenue of Rs.31778mnin H1FY17 as against Rs.29907mn during H1FY16 thereby registering 6.3% growth.

With healthy order backlog of Rs 1,572cr, JISL expects a double digit growth in its consolidated revenues in FY17. The company expects its MIS, Foods and Pipes businesses to grow in double digits. The recent foray in solar pump and food retail segment should result in incremental revenues and profits.

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...

4QFY16 results below estimates: Jain Irrigation (JI) reported overall revenue of INR20.1b (vs. our estimate of INR22b), marking a de-growth of 1.6% YoY. EBITDA stood at INR2.9b (vs. our estimate of INR3.1b) in 4QFY16, with EBITDA...

Results below estimates: JI reported overall revenue of INR13.8b (est. of INR14.5b), marking a 6.7% YoY growth. EBITDA stood at INR1.5b (est. of INR1.7) in 3QFY16, with EBITDA margins at 11.1% (est. of 12%), a contraction of...

Jain Irrigation reported a moderate growth of 3.5% YoY in its consolidated revenue at Rs 1315 Cr

JISL to bring in synergies to its MIS business: For the customers in the irrigation business, there are not many financing options available for farmingactivities. JISL has floated Sustainable Agro Commercial Finance Ltd (SAFL),a NBFC which provides finance to farmers. This could able to ease its tretched balance sheet and reduce the working capital cycle.