Jain Irrigation Systems (JISL) is a renowned player in the agriculture sector, with core focus on providing micro irrigation solutions. The company manufacturers products having applications in irrigation such as drip and sprinkler irrigation systems, PVC pipes, polyethylene pipes, etc. The company has also entered in agro-processing segment under which it processes dehydrated onions, vegetables and processed fruits. The company also provides solutions for solar pumps, solar water heating systems and photovoltaic systems. JISL has 30 manufacturing plants and over 10,000 dealers and distributors across the globe.
On the financial front, Jain Irrigation posted 1.3 per cent decrease in its revenue to ₹972.38 crore in Q1FY18 from ₹985.84 crore in Q1FY17. The company’s PBDT increased 7.92 per cent to ₹85.71 crore in the first quarter of FY18, as against ₹79.42 crore in the corresponding period last year. The company’s net profit rose 16.62 per cent to ₹40.87 crore for the corresponding period. On an annual basis, the company’s revenue decreased 8.9 per cent to ₹3,863.95 crore in FY17 compared to the previous fiscal. The company’s PBDT increased 36.14 per cent to ₹384.29 crore in FY17 from ₹282.26 crore in FY16. The company’s net profit increased tremendously from ₹71.25 crore in FY16 to ₹163.80 crore in FY17, registering 129 per cent increase. The stock is currently trading 1.14 times to its book value. The company has been maintaining a healthy dividend payout of 30.34 per cent. We expect the stock price to rise further.