Analyst's Pick: Jain Irrigation
Bank of America Merrill Lynch has initiated coverage on Jain Irrigation with a ‘buy’ rating and price target of Rs 500.
By ET Bureau |
Jain Irrigation
CMP: Rs 435.40
Target price: Rs 500
Bank of America Merrill Lynch has initiated coverage on Jain Irrigation with a ���buy��� rating and price target of Rs 500. ���We forecast 30% FY09-11 EPS (earnings per share) CAGR led by strong revenue growth in domestic micro irrigation and changing business mix in favour of high margin businesses like agro processing,��� the foreign brokerage said in a report.
Bank of America Merrill expects the company���s changed business focus in favour of micro irrigation and agro processing to boost profit margins by 270 basis points. ���We expect revenue contributions from these businesses to rise to 71% by FY11 and improve margins further by 60 bps despite declining profitability in plastic pipes and plastic sheets,��� the brokerage said.
CMP: Rs 435.40
Target price: Rs 500
Bank of America Merrill Lynch has initiated coverage on Jain Irrigation with a ���buy��� rating and price target of Rs 500. ���We forecast 30% FY09-11 EPS (earnings per share) CAGR led by strong revenue growth in domestic micro irrigation and changing business mix in favour of high margin businesses like agro processing,��� the foreign brokerage said in a report.
Bank of America Merrill expects the company���s changed business focus in favour of micro irrigation and agro processing to boost profit margins by 270 basis points. ���We expect revenue contributions from these businesses to rise to 71% by FY11 and improve margins further by 60 bps despite declining profitability in plastic pipes and plastic sheets,��� the brokerage said.
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