The Hindu Business Line : Jain Irrigation moves up

THE Jain Irrigation Systems Ltd stock today moved up on major bourses on trading and investment interest. On the National Stock Exchange it gained 3.39 per cent. The traded quantity in the counter also increased with substantial delivery volumes. Yesterday also it had improved by around 3 per cent.

According to Mr Ketan Thacker, an analyst with Anagram Stockbroking, the company has shown a turnaround in the business of micro irrigation systems and food processing. "Outlook for these sectors, in view of anticipated good monsoon, appears good. For the quarter ended on March 31, 2004, the net of the company grew by 103 per cent," he mentioned.

At today's closing price, the stock traded at around 17 times its 2003-04 earnings per share.

Promoted by Mr B.H. Jain, the company has seen GE Plastics of the US increase its holding to around 45 per cent, higher than promoter's current holding of around 32.73 per cent. GMO Emerging Market Funds also holds around 5.6 per cent.

According to overseas fund managers, the GE's investment interest and company's technical collaboration with RIS of Italy and Chapin Watermtios of US makes it an interesting stock to watch.

It bagged a massive irrigation system laying order from the Andhra Pradesh Government, part of which has already been executed. "The future execution after change of government in the state will be keenly watched by the market," he commented.