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Jain Irrigation Systems Ltd. Stock Analysis

Small Cap
Evaluated by 4861 users | BSE: 500219 | NSE: JISLJALEQS |
Plastic Products
Jain Irrigation Systems (JISL) was incorporated in 1986. JISL is engaged into manufacturing of drip and sprinkler irrigation systems and components. The company started with seed capital of Rs.7000. Its client base includes Indian and Overseas companies like Aditya Birla, Bharti, BSNL,...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Jain Irrigation Systems Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 13.13%12.9%14.18%7.71%7.57%6.84%5.64%5.27%8%7.51%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,7233,3313,7813,5114,1334,2364,2743,7104,2134,443
Y-o-Y Gr. Rt.-22.3%13.5%-7.1%17.7%2.5%0.9%-13.2%13.6%5.5%
Adjusted EPS (Rs.) 5.866.457.792.092.671.881.062.125.334.62
Y-o-Y Gr. Rt.-10.1%20.8%-73.2%27.8%-29.6%-43.6%100%151.4%-13.3%
Book Value per Share (Rs.) 35.2642.7646.3350.9450.825187.2890.0388.4191.55
Adjusted Net Profit 22324931595.212486.950.5102275238
Net Op. Cash Flow (Rs. Cr.) 4282042393735215123347831,019-107
Debt to Cash Flow from Ops 4.1610.8611.87.685.646.028.492.081.18-15.31
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Jain Irrigation Systems Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.6%1.5%1.3%5.5%
Adjusted EPS -2.6%11.6%63.4%-13.3%
Book Value per Share 11.212.51.63.6
Share Price -20.5% -26.5% -47% 19%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 19.1516.4317.554.485.273.691.552.396.25.14
Operating Profit Margin (%) 20.6121.6322.0417.7315.5814.8516.0116.3314.5315.89
Net Profit Margin (%) 8.187.468.342.712.992.051.182.746.535.36
Debt to Equity 1.331.341.51.241.251.310.680.380.260.35
Working Capital Days 213242288334291292284305260276
Cash Conversion Cycle 75768210783888812185107
Entity Percentage Holding
Promoters 28.64%
Institutions 9.69%
Non-Institutions 61.67%
Others 0.39%
Pledged *17.0526.5627.1644.7948.4150.8550.2649.9549.9549.95
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Jain Irrigation Systems Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Jain Irrigation Systems Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Jain Irrigation Systems Ltd.'s performance infers:

Jain Irrigation Systems Ltd. earnings have grown by 11.6%, whereas share price has depreciated -26.5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Jain Irrigation Systems Ltd. share prices over the last 10 years. Here is what we found out:

Jain Irrigation Systems Ltd. share price has depreciated -24% annually over the past ten years.

Jain Irrigation Systems (JISL) was incorporated in 1986. JISL is engaged into manufacturing of drip and sprinkler irrigation systems and components. The company started with seed capital of Rs.7000.

Its client base includes Indian and Overseas companies like Aditya Birla, Bharti, BSNL, Coca-Cola, Hindustan Levers, HFCL, Hutch, IGL, IVRCL, Larsen & Toubro, Mahanagar Gas, Nestle, Power Grid, Ramky, Reliance, Tata, Alcatel, Coca-Cola, Heinz, Friesland

Jain Irrigation Systems (JISL) was incorporated in 1986. JISL is engaged into manufacturing of drip and sprinkler irrigation systems and components. The company started with seed capital of Rs.7000.

Its client base includes Indian and Overseas companies like Aditya Birla, Bharti, BSNL, Coca-Cola, Hindustan Levers, HFCL, Hutch, IGL, IVRCL, Larsen & Toubro, Mahanagar Gas, Nestle, Power Grid, Ramky, Reliance, Tata, Alcatel, Coca-Cola, Heinz, Friesland Foods, Mitsui & Co, Taiyo, Unidelta, Vink, Worlee etc.

During November 2010, Jam Irrigation Systems has entered into an agreement to acquire controlling stake in Sleaford Quality Foods (SQFL), a UK based industrial Food Ingredients Supplier. The company has acquired 80% stake in Sleaford Quality Foods, UK.

During February 2011, the company had inaugurated a micro-irrigation unit in Bhavnagar, Gujarat which is company’s second plant in Gujarat. This state of the art facility is to cater to the growing demand for micro irrigation systems and piping systems in Gujarat.

In May 2011, Jain Irrigation had signed a memorandum of understanding with the Rwandan Government in Africa for developing irrigation solutions for local farmers and has already started work on one project.

In 2014 Union Bank entered atie up with Jain Irrigation to fund farmers. Dena Bank Enters into A National Level TIE-UP With Jain Irrigation.

Products and Services

It manufactures wide range of products such as drip irrigation systems, sprinkler irrigation systems, valves, water filters, green houses, bio fertilizers, onion and vegetable dehydration, PVC pipes and fittings, PVC sheets, PC sheets, solar water heating systems, agricultural and engineering consultancy and many more.

It offers a wide range of products and services to various segments such as small farmer, urban household, mining industry, plant tissue culture, chemical industry, sugar factories, oil and gas exploration, green houses, waste land development, farm production & management, fruit and vegetable processing and many more.

Recognition

It was honoured as Top Exporter of Drip Irrigation Systems 2006 at 'PLEX-CONCIL' Awards.

It received 'APEDA Export Award” for its Significant Contributions in Quality and Exports of Agriculture and Processed Food Products-2006. For its contribution in Innovation in Banana Tissue Culture and High TSS Onion it has received Golden Peacock Award for Innovative Products/Services.

Jain Irrigation Systems has bagged the first rank in the Maharashtra State Vanashree Award for the year 2007 given by the Rural Development and Water Conservation and Social Forestry Department of Government of Maharashtra.

APEDA (Agricultural and Processed Food Products Export Development Authority), Ministry Of Commerce and Industry, Government of India has awarded Jain Irrigation Systems with its prestigious Golden Award. The company was awarded for impressive performance in exports of processed fruits and vegetables area, for 2009-2010.

Jain Irrigation Systems has also won the FT (Financial Times) ArcelorMittal Environment Award for 2011 for its contribution to the agriculture sector in India.

CNBC Asia India Corporate Responsibility 2013 Award for Jain Irrigation
Jain Irrigation bags the EEPC India 2012–13 ''Star Performer'' Award for outstanding export performance
Jain Irrigation won the ABP News Global CSR Excellence and Leadership Award in the category ''Accounting for Climate Change

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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