Jain Irrigation System (DVR) Stock To Watch In 2017
Jain Irrigation System (DVR) is definitely a stock to watch in 2017. Brokera are quite hopeful about this scrip. There can be some triggers in the stock in coming days too. The company is in irrigation systems, they manufacture pipes.
The company also has a food processing unit. The company was quite stretched with its balance sheet. There was cash crunch in the system. Now the company has sold a part of the food processing unit to Mandala Capital. They managed to sell that part in good valuations. The stress in the balance sheet looked releaved now.
The government is also increasing the allottment in the irrigation and micro irrigation segment and that has been watched since last two union budgets. The market is quite hopeful that this time too some big announcements may hit the agricultural sector in the coming union budget 2017. Irrigation is also included in the agricultural sector.
So in immediate future there can be a big trigger for Jain Irrigation Systems (DVR). The results have already started reflecting the same. In Sep2016 quarter the company has already posted good results, an increase of 24% in EBITDA. Monsoon was also quite good last year as compared to last few years. There can be some near term pain for demonitisation. Whereas when the demonitisation effect will fade out once again the business will be back in track.
So we recommend our readers to consider Jain Irrigation System (DVR) as a stock to watch in 2017. There can be good announcements in the budget for this sector. We believe this company will show good results in 2017 during or after budget.
On January 20, 2017 the stock has closed at 61.70 (NSE code: JISLDVREQS). Watch the image below:
On near future there can be some correction due to overbought and decending oscillators. We recommend readers to accumulate small quantity in current level and add more in dips torawds 50-55 in Jain Irrigation System (DVR) stock.
Indrajit is a professional blogger and Trading System developer, Amibroker expert, Wordpress expert, SEO expert and Stock market analyst. Trading since 2000, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.