Thursday, November 26, 2009

Stock Idea: Jain Irrigation

This stock, typically comes to the fore only during the Budget. With the Govt always expected to give sops to the agriculture sector, this is one stock which has always been a big beneficiary. But looks like the poor monsoon and the recession in international markets have played on the sequential numbers, which are clearly under pressure.
Its hi-tech agro input products, which includes micro irrigation systems, PVC piping products, tissue culture plants and agri R&D, on a QOQ has shown a 15% decline in sales. Consequently, EBIDTA on the same has come down from 26% in current Q2 to 22%. Industrial products did well and probably helped shore the margins. Revenue of IP was up 31% and EBIDTA margin was up by 1% at 21%. Overall net sales, has shown a sequential drop of 1.8%.
Apart from fall in revenue, operating expenses rose on a QoQ by 2.56%. So these two factors together pulled down the numbers. Net profit was down 23% at Rs.42.56 crore.
Drip irrigation is actually the bets method to combat a poor monsoon and with more and more states realising this, it would only go to increase business for Jain. Infact, the company which has been concentrating more in southern and western India but it is now making plans to enter central and north India. Apart from concentrating on domestic demand, the company is also looking at exports. It has invested $10 million to set up a new plant to make irrigation systems and plastic pipes in Turkey, production at which will begin this month. It is also planning to expand into Israel and U.S but no real investments for the same have been made yet.
It currently has an order book of Rs.900 crore of which majority is for micro-irrigation. It is also planning to tap Asian and Middle-east markets for selling processed food, where it already sells micro-irrigation.
Its growth in FY10 is expected to be led by micro-irrigation division which, it expects to grow by 40% and next driver being food processing, which it hopes would grow by 20-25%.
Companies which have an agri focus would do well and especially Jain. Stay invested.
Source: Internet (www.premiuminvestments.in by S P Tulsian)

Intraday Trading Calls for 26th November

Indian Stock Market may open negaive but remains very volatile and a flat to positive closing expected.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

AMBUJA CEMENT

Buy Above

92.65

95.20

98.00

Sell Below

91.40

89.45

86.00

IDFC

Buy Above

170.75

173.65

177.00

Sell Below

169.35

165.55

161.00

AHLUWALIYA CONTRACT

Buy Above

180.10

185.05

192.00

Sell Below

177.40

172.35

168.00

GODREJ INDUSTRIES

Buy Above

206.50

211.10

216.00

Sell Below

204.15

200.10

195.00

BAJAJ HIND

Buy Above

224.25

229.65

234.00

Sell Below

221.05

216.35

212.00

GMDC

Buy Above

131.75

135.40

140.00

Sell Below

128.70

124.35

120.00

COMPACT DISC

Buy Above

67.70

71.20

75.00

Sell Below

66.45

63.20

60.00

GOOD LUCK

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



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