Jain Irrigation surges on buzz a foreign brokerage maintains overweight rating

Jain Irrigation Systems rose 4.54% to Rs 93.35 at 13:06 IST on BSE on reports that a foreign brokerage has maintained its overweight rating on the stock.

Meanwhile, the S&P BSE Sensex was up 27.62 points or 0.1% at 29,005.64.

On BSE, so far 10.38 lakh shares were traded in the counter as against average daily volume of 7.71 lakh shares in the past one quarter. The stock hit a high of Rs 94.65 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 91 so far during the day. The stock had hit a 52-week low of Rs 47 on 17 February 2016. The stock had outperformed the market over the past one month till 6 September 2016, advancing 20.76% compared with 3.2% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 36.13% as against Sensex's 8.22% rise.

The mid-cap company has equity capital of Rs 91.44 crore. Face value per share is Rs 2.

The foreign brokerage reportedly said that recapitalized balance sheet augurs well for Jain Irrigation Systems' earnings. Cyclical recovery along with financial leverage is expected to boost earnings of the company, the brokerage reportedly said.

On consolidated basis, Jain Irrigation Systems' net profit jumped 302.8% to Rs 58.52 crore on 3.2% growth in net sales to Rs 1629.48 crore in Q1 June 2016 over Q1 June 2015.

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.

Powered by Capital Market - Live News