Jain Irrigation Systems rose 3.24% to Rs 73.25 at 10:47 IST on BSE after the company said it bagged one of the country's largest irrigation projects worth Rs 385.70 crore in Karnataka.
The announcement was made after trading hours on Monday, 30 December 2013.
Meanwhile, the BSE Sensex was up 65.40 points, or 0.31%, to 21,208.41.
On BSE, so far 2.14 lakh shares were traded in the counter, compared with an average volume of 2.93 lakh shares in the past one quarter.
The stock hit a high of Rs 73.55 and a low of Rs 72.20 so far during the day. The stock hit a 52-week high of Rs 86.40 on 15 January 2013. 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 30 December 2013, sliding 0.07% compared with the Sensex's 1.69% rise. The scrip had, however, outperformed the market in past one quarter, rising 22.54% as against Sensex's 9.10% rise.
The mid-cap company has an equity capital of Rs 90.98 crore. Face value per share is Rs 2.
The project mooted by Krishna Bhagya Jal Nigam (KBJNL), a division of Water Resources Department of Karnataka, intends to irrigate 30,381 acres owned by over 7,000 farmers in 35 villages. KBJNL selected Jain Irrigation Systems through national competitive bidding process.
The project involves survey, planning, design, supply and execution of distribution system using HDPE / PVC piping network. Besides, it involves formation of Water Users Co-operative Societies in convenient blocks, installation of on-farm fully automated Micro Irrigation System on the field and two year's maintenance after commissioning. The company will also train farmers on proper use of micro irrigation system and capacity building of farmers, Jain Irrigation Systems said in a statement.
Successful commissioning of this project will assume the status of being the largest Micro Irrigation project in the world for improving water use efficiency in canal command areas through conduit distribution and use of Micro Irrigation Systems, Jain Irrigation said.
Commenting on the development, Jain Irrigation Joint Managing Director Atul Jain said: "We are excited to receive such large order for uniquely designed project, which will usher in significant benefits to all stakeholders considering backdrop of dwindling water supply in our country in inverse proportion to more demand for agriculture produce."
Jain Irrigation Systems reported a consolidated net loss of Rs 80.70 crore in Q2 September 2013, as against a net profit of Rs 44.72 crore in Q2 September 2012. Net sales rose 22.2% to Rs 1201.40 crore in Q2 September 2013 over Q2 September 2012.
Jain Irrigation is a diversified company with product portfolio encompassing irrigation product, piping products, plastic sheets, dehydrated foods, fruit puree, juice concentrates and solar energy systems. Jain Irrigation has pioneered drip irrigation for small farmers in India and has a major market share in one of the fastest growing irrigation markets in the world and is also the second largest drip irrigation company in the world.
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