Jain Ir­ri­ga­tion

Dalal Street Investment Journal - - COVER STORY -

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.

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