BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
Edelweiss maintains buy on Jain Irrigation
Jain Irrigation (JISL) reported muted Q1FY18 numbers with revenue growing only 1% YoY to INR 16.8bn as all segments reported flat growth or declined impacted by GST-related destocking and deferment. While standalone hi-tech agri revenue grew only 4% YoY to INR4.7bn, consolidated plastic division declined 5% YoY and agro processing declined 12% YoY on lower pick up by major customers like Coke India. EBITDA margin was flat at 14%. On the debt front, excluding the US acquisition (INR3.2bn), net debt fell by INR0.7bn YoY. While management has maintained guidance, we prune FY18 EBITDA growth estimate to 20% (JISL's guidance: 25% YoY growth) and revise FY18/19E EPS down 9/4% to factor in challenges in H1FY18 due to GST in all of the company's major segments.