Motilal Oswal research report on Jain Irrigation
Jain Irrigation (JI) reported overall revenue of INR 20.1b (vs. our estimate of INR 22b), marking a de-growth of 1.6% YoY. EBITDA stood at INR 2.9b (vs. our estimate of INR 3.1b) in 4QFY16, with EBITDA margin coming in at 14.3% (vs. our estimate of 14.2%), up 60bp YoY. Consequently, adjusted PAT for the quarter stood at INR 884m (vs. our estimate of INR 1,080m), as against INR 1,029m in 4QFY15.
In view of anticipation of a better monsoon and the Maharashtra government’s thrust on irrigation, we expect the MIS business to bounce back. Overall, we estimate 14% revenue CAGR and 19% EBITDA CAGR over FY16-18, translating into PAT CAGR of 93% to INR 3.8 in FY18, mainly to factor in the lower interest outgo. We maintain Buy with a target price of INR 76, based on 10x FY18E EPS (rolled over to FY18).
For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
