Jain Irrigation gains on budget sops

Jain Irrigation Systems advanced 3.98% to Rs 118.85 at 15:01 IST on BSE after the Finance Minister said that there is a need to provide assured irrigation to mitigate risk.

Meanwhile, the BSE Sensex was up 142.69 points, or 0.56%, to 25,587.50

On BSE, so far 27.01 lakh shares were traded in the counter, compared with an average volume of 9.95 lakh shares in the past one quarter.

The stock hit a high of Rs 119.50 and a low of Rs 108 so far during the day. The stock hit a 52-week high of Rs 133.45 on 8 July 2014. The stock hit a 52-week low of Rs 46.10 on 1 August 2013.

The stock had underperformed the market over the past one month till 9 July 2014, falling 9.43% compared with the Sensex's 0.53% fall. The scrip, however, outperformed the market in past one quarter, gaining 67.35% as against the Sensex's 12.08% rise.

The mid-cap company has an equity capital of Rs 92.48 crore. Face value per share is Rs 2.

While presenting the final Union Budget for 2014-15 in Lok Sabha today, 10 July 2014, Finance Minister Arun Jaitley said that bulk of the country's farm lands are rain fed and dependent on monsoons. Therefore, there is a need to provide assured irrigation to mitigate risk. To improve access to irrigation, the Finance Minister proposed to initiate the scheme Pradhan Mantri Krishi Sinchayee Yojana and set aside a sum of Rs 1000 crore for this purpose.

On 4 July 2014, Jain Irrigation Systems said it received letter of intent (LOI) for an irrigation project by Himachal Pradesh government involving an outlay of approximately Rs 100 crore.

Jain Irrigation Systems' consolidated net profit jumped 39.4% to Rs 75.34 crore on 11.1% growth in net sales to Rs 1805.76 crore in Q4 March 2014 over Q4 March 2013.

Jain Irrigation Systems is engaged in manufacturing of micro irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs.

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