Jain Irrigation showered with gains on Morgan Stanley report

Jain Irrigation is buzzing on bourses with 7 per cent gains on an intra-day basis on Thursday even as broader market surged taking cues from European markets. Jain Irrigation, an Indian multinational company with manufacturing plants in 29 locations across the globe, is buzzing due to Morgan Stanley's upgrades on the counter. 

According to the global brokerage firm the earnings will improve for the counter as the company has been successful in recapitalising its balance sheet at lower interest rates.

The upgrades by Morgan Stanley are based on expected growth in earnings at a compounded annual growth rate (CAGR) of 70 per cent over FY17-19 period. The overweight ratings from equal weightage ratings has triggered interest in the stock amongst traders. 

According to the broker reports the two factors that will help Jain Irrigation, are expectation of a better monsoon and aiding policy announcement from both central and state government on Micro Irrigation Systems (MIS) after two consecutive drought years. 

Jain irrigation is an integrated player in global food systems and leads in manufacturing of Micro Irrigation Systems, Plastic Pipes & Products, Agro Processed Products, Renewable Energy solutions, Tissue Culture Plants, Financial Services and other agricultural inputs since several decades. 

Over a 1 year period the stock is up by 2.7 per cent; whereas the stock is up by almost 25 per cent in last 3 months owing to the monsoon expectations.