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Jain Irrigation corrects on profit booking

Capital Market 

Jain Irrigation Systems fell 2.06% to Rs 111.55 at 15:24 on on profit booking after a recent rally.

Meanwhile, the S&P Sensex was down 53.74 points, or 0.18% to 29,368.65.

On the BSE, 14.24 lakh shares were traded in the counter so far, compared with average daily volumes of 6.22 lakh shares in the past one quarter. The stock had hit a high of Rs 115.50 and a low of Rs 110.65 so far during the day. The stock hit a 52-week high of Rs 116 on 20 April 2017. The stock hit a 52-week low of Rs 59.90 on 29 April 2016.

The stock had outperformed the market over the past one month till 20 April 2017, rising 21.49% compared with 0.87% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 27.55% as against Sensex's 8.83% rise.

The mid-cap company has equity capital of Rs 92.03 crore. Face value per share is Rs 2.

Shares of Jain Irrigation Systems rose 14.53% in two trading sessions to settle at Rs 113.90 yesterday, 20 April 2017, from its close of Rs 99.45 on 18 April 2017.

Jain Irrigation Systems announced during trading hours today, 21 April 2017, that it bagged the Poorigali Integrated Micro Irrigation Project by Cauvery Neeravari Nigam, Government of Karnataka through national competitive bidding. The project is valued at Rs 569 crore.

Shares of Jain Irrigation Systems rose 5.71% to Rs 113.90 yesterday, 20 April 2017, after the company said it acquired 80% stake in two US-based entities. The company, through its US-based wholly owned subsidiary, agreed to acquire 80% stake in two US-based entities. Two of the United States' largest micro-irrigation dealers - Agri-Valley Irrigation, Inc. (AVI) and Irrigation Design and Construction, Inc. (IDC), have entered into an agreement to merge ownership of their businesses into a newly formed distribution company. The new organization is an un-paralleled leader in design, construction, service, and innovative Ag Technology. This entity will provide a unique platform to help growers implement state-of-the-art irrigation technology and achieve 'More Crop Per Drop'. AVI and IDC have been long tenured stable companies with operations in United States of America.

The merger will help Jain Irrigation to forward integrate itself in the value chain and build direct relationship with growers. No government or regulatory approvals are required to complete the transaction. The transaction is expected to be completed in the next few weeks. The consideration for transaction will be paid in cash not exceeding $48.50 million and subject to net working capital adjustments at the time of closing.

On a consolidated basis, Jain Irrigation Systems reported net profit of Rs 6.15 crore in Q3 December 2016 compared with net loss of Rs 23.01 crore in Q3 December 2015. Net sales rose 4.5% to Rs 1417.82 crore in Q3 December 2016 over Q3 December 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.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 21 2017. 15:26 IST