KR Choksey's research report on Jain Irrigation Systems
Revenue grew by 24.4% YoY to INR 20.9bn against our estimates of INR 19.6bn. The growth was led by agro processing segment (+39% YoY). Further, steady growth from Hi-tech and plastic segment also supported overall growth for the qtr. The revenue from hi-tech segment was up by 17% YoY to INR 10.1bn, while the same from plastic remained higher by 15% YoY to INR 5.9bn supported by low base. OPM dipped by 101bps YoY to 12.9% due to contraction in operational performance into Hi-tech and agro segments. OPM for both segment fell by 78bps YoY & 229bps YoY respectively. On the other side, plastic segment OPM improved by 65bps YoY to 9% due to improvement in the sales mix of PE. EBITDA grew by 15.4% YoY to INR 2.7bn against our estimates of INR 2.6bn. PAT was up by 84.4% YoY to INR 0.8bn against our estimates of INR 0.5bn. The beat is due to higher other income (+356% YoY).
Outlook
We have maintained our estimates and valued the company on SOTP basis. We have arrived at target price of INR 163, potential upside of 115%. We retain BUY rating on the stock.
For all recommendations report, click here
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