Research – 24th January 2018



Market Cap : 7,115.38 Cr.

Stock P/E: 48.77

Book Value: 82.92

Face Value: ₹ 2.00

CMP : 142.95

Financial Results

Quarter Ended 30 Sep 2017 30 Jun 2017
Total Income 76,827.00 97,238.00
PBT 1,951.00 3,883.00
Net Profit/Loss 1,604.00 4,087.00

Value in lakhs

Share Holding Pattern

Category 30 Sep 2017 31 Dec 2017
Promoter & Promoter Group 28.46 28.46
Public 71.54 71.54
Shares held by Employee Trusts 0.00 0.00
Total 100.00 100.00

Jain Irrigation is the world’s 2nd largest and largest Indian micro irrigation systems (MIS) company with a market share of >50%.The company would benefit from rebound in MIS segment and focus on solar water pumps and food processing business. Moreover, better working capital management and reduction in debt will strengthen its balance sheet and cash flows. Expect sales and PAT to grow at 14% and 48% CAGR respectively over FY17-19E.

Jain Irrigation’s plastic, hi-tech agricultural inputs and agro processing segments contributed 26%, 46.5% and 23.1% respectively to its top-line in FY17.It derives 45% revenue from India and the rest is contributed by overseas markets.

The micro irrigation system (MIS) opportunity in India is expected at Rs 40,000cr over the next 6-7 years owing to government’s thrust on irrigation. The company’s micro irrigation business is likely to grow at 20% CAGR over FY17-19E led by strong order book in project segment and growth in retail and exports businesses. Its food processing business is expected to do well on account of its foray into spices and orange juices. Piping business growth will be led by economy pick up and government thrust on infrastructure. Analyst forecast 12% revenue CAGR each in piping & food processing business over FY17-19E. Further, company’s acquisition of two irrigation companies in USA will help it expand its offerings in the country.