Jain Irrigation System (DVR) is definitely a stock to watch in 2017. Brokers 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.
It also has a food processing unit. The company was quite stretched with its balance sheet. There was a 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 relieved now.
The government is also increasing the allotment in the irrigation and micro-irrigation segment and that has been watched since the 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 the 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 well last year as compared to last few years. There can be some near-term pain for demonetization. Whereas when the demonetization effect will fade out once again the business will be back on 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 the budget.
On January 20, 2017, the stock has closed at 61.70 (NSE code: JISLDVREQS). Watch the image below:
In the near future, there can be some correction due to overbought and descending oscillators. We recommend readers to accumulate small quantity in the current level and add more in dips towards 50-55 in Jain Irrigation System (DVR) stock.