Synopsis:
Jain Irrigation Systems Limited has been awarded a domestic order worth Rs. 135 crore from Maharashtra State Electricity Distribution Company Limited (MSEDCL) under the Magel Tyala Saur Krushi Pump Yojana Scheme.
The shares of this agriculture and infrastructure solution firm engaged in providing micro irrigation system pipes, plastic sheets, agro products, and farm inputs are in focus upon receving new work orders worth Rs. 135 Crores.
With a market capitalization of Rs.3625 crore, the shares of Jain Irrigation Systems Limited were trading at Rs.50.70, down by 3.86% from the previous day’s closing price of 52.80 per share.
Work Order
Jain Irrigation Systems Limited received an order from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for a consideration of Rs.135 crore in order to design, manufacture, supply, transport, install, test, and commission 5,438 off-grid DC solar water pumps in 3 HP, 5 HP, and 7.5 HP capacities.
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Operational Front
Jain Irrigation Systems Limited is a diversified company having its divisions in Hi Tech, plastic, and agro processing. It manufactures products like micro irrigation systems, equipment, offers financial services, and other farm inputs.
The company has played a key role in promoting modern irrigation methods and innovative technologies that save water and help over six million small farmers significantly boost their crop yields.
The company’s consolidated order book stands at Rs.18,044 million, which consists Rs.3,143 million from the Hi-tech agri segment, Rs.2,846 million from plastic products, and Rs.12,056 million from the food and agri segment.Coming to the revenue breakup, it generates 33 percent from plastic, 30 percent from agro and 37 percent from Hi-tech agri.
The company’s revenue from the operation rose from Rs.1478 crore in Q1FY25 to Rs.1546 crore in Q1FY26, while net profit declined from Rs.12 crore to Rs 11 crore. It has reported ROE and ROCE is 0.46 and 4.95 percent, respectively. Followingly, it commands a PE ratio of 112, which is higher than the industry PE ratio of 35, indicating share is overvalued compared to its peer companies.
Written by Jhanavi Sivakumar
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