Jain Irrigation Systems - Subdued quarter, optimistic outlook - Edelweiss

Jain Irrigation Systems (JISL) posted an adjusted PAT, below estimates, owing to a steep decline in MIS (17.5% down YoY) and lower EBITDA margin. The management is confident to achieve positive sales growth in Q4FY13 (vs decline for past four consecutive quarters) and 20% YoY growth in MIS during FY14.

Further, recent fund raising will lead to lower interest outgo by INR0.8bn-INR1bn in FY14. We believe that JISL's MIS business is likely to stabilize and show positive growth in coming quarters including an improved balance sheet.

We maintain 'BUY'.

Source : Equity Bulls

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