I am initiating this thread, as I find “Jain Irrigation System” ( http://www.jains.com/ ) is an interesting Company.
Founded by Shri. Bhavarlal Hiralal Jain, Jain Irrigation Systems Limited (JAIN) with more than 11,000 associates worldwide and revenue of more than a billion dollars, is an Indian multinational company with manufacturing plants in 29 locations across the globe. It is an integrated player in global food systems and leads in manufacturing of Micro Irrigation Systems, Plastic Pipes & Products, Agro Processed Products, Renewable Energy solutions, Tissue Culture Plants, Financial Services and other agricultural inputs since several decades. It has pioneered a revolution with modern irrigation systems and innovative technologies using cutting edge research and development in order to save precious water and to get significant increase in crop yields using global agronomical knowledge for millions of small as well as large farmers.
- Currently share is trading @ Rs.84.20
-Share has fallen from its 52 weeks high of Rs.108 (30th Oct 2016) and consolidating in 80 to 90 Rs. Range in last 1.5 months.
-Company has come out with Good Sept 2017 Quarterly result with 4.69 Crore Profit ( -5.68 Crore Loss during Sept 2016 Quarter).
- Jain Irrigation Systems reported to Rs 4.69 crore Net profit in the quarter ended September 2016 as against net loss of Rs 5.68 crore during the previous quarter ended September 2015.
-Sales declined 14.96% to Rs 699.42 crore in the quarter ended September 2016 as against Rs 822.45 crore during the previous quarter ended September 2015.
- CMP / BV Ration is 1.60 (one of the best in industry)
- P/E Ratio 27.66 seems reasonable for this Company.
- Share has fallen from its 52 weeks high of Rs.108 (30th Oct 2016) and consolidating in 80 to 90 Rs. Range in last 1.5 months. Rs.46.80 is 52 weeks low.
- Debt to equity ratio is around 1.5 is on little higher side, but looks Management is trying to bring it down.
- Company has given small Dividend Rs.0.50 per share(25%)Dividend last few years
( last dividend Date 15-09-16)
Promoter Shareholding 30.95% looks like a concern.
I am not sure the impact of “Rupee Demonetization” on Jain Irrigation in short term as I have very limited knowledge on this.
Disclosure : Invested small Qty. at around Rs. 90 …Planning to invest more.