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Last Updated : Feb 21, 2017 03:16 PM IST | Source: Moneycontrol.com

Buy Jain Irrigation; target of Rs 135: Edelweiss

Edelweiss is bullish on Jain Irrigation has recommended buy rating on the stock with a target price of Rs 135 in its research report dated February 16, 2017.

 
 
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Edelweiss' research report on Jain Irrigation


Jain Irrigation’s (JISL) Q3FY17 consolidated revenue at INR14.4bn grew only 4.6% YoY. Demonetisation impacted domestic business of agri input, plastic and agro division. Overall margin improved 127bps YoY to 12.8% YoY. While net debt remained constant, JISL raised USD200mn in Q3FY17 to refinance its high-cost debt, which it expects to lead to INR 400mn interest savings.


Outlook


As we roll over to FY19E, we anticipate better operational performance and lower interest costs to drive PAT growth. We build in 13% and 57% revenue and PAT CAGR, respectively, over FY17-19. Maintain ‘BUY’ with target price of INR 135, valuing it at 15x FY19E EPS.


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First Published on Feb 21, 2017 03:16 pm
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