IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, recommends ‘Add’ on Jain Irrigation.
The estimates has been lowered for FY12-13ii EPS for Jain Irrigation by 7-14% to factor in the likelihood of a more pronounced slowdown in the MIS business than it had been anticipated earlier. It is now assumed YoY growth in MIS sales of 15% for FY12 and 5% for FY13, the report said
IIFL said, "Slower sales growth should help control working capital in the near term while the expected launch of the NBFC in early FY13 should help in the longer term. We lower our Dec-12 target price to Rs100, based on a 12x forward P/E multiple".
The report was published by IIFL’s Institutional Equities Research desk.