1 JISLJALEQS share price target reports by brokerages below. See what is analyst's view on JISLJALEQS share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Given the backdrop of government’s thrust on irrigation and sustainable management of water resources and Jain Irrigation Systems Ltd. being the largest player in this segment of business makes the stock value investing. However, steady yearly performance, inability of the management to reduce its debt and greater share of export business which is vulnerable to foreign exchange rate risk, makes stock riskier proposition. We value the stock PE 7.8x of FY21E EPS and have arrived at downwardly revised TP of Rs. 60 with potential upside of 33%. Seasonality of business and government policies could be key risks to valuation.
Globally, the significance of MIS as efficient tools of irrigation has been recognized. However, its penetration across the world is still very low. Penetration of MIS in India is merely about 6% against 90% in Israel and 78% in Russia. Jain Irrigation Systems Limited with the status of being 2nd largest producers of MIS and huge distribution network across world is well positioned to capitalize on opportunities. Besides, management has expressed its intent to bring down debt significantly by monetizing its assets. In the process if IPO for Food Processing business is brought, the move will be value unlocking. Given this backdrop, the company seems to be value investing. We have valued the stock at PE 6.3x of FY21E EPS and have arrived at TP of Rs. 80 with potential upside of 44%. Seasonality of business and government policies could be key risks to valuation.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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