Overweight Jain Irrigation Systems, target Rs 92: Morgan Stanley

Morgan Stanley maintains an overweight rating on Jain Irrigations Systems with a 12-month target price of Rs 92. High leverage has been a key concern for the company, but the balance sheet is recapitalized now with lower interest cost.

"Plus, a better monsoon appears likely, and we see increasing central and state government thrust on MIS. At our new PT, adjusted P/E would be 20.6x for F17e and 13.5x for F18e," added the report.