Think Of JAIN IRRIGATION A Recession Proof Stock

JAIN IRRIGATION an "agriculture stock", has done well FY09. The stock price has moved up almost Rs.100 in a period of over one month.  Standalone net profit for the year ended 31st March 2009 fell by 15.52% at Rs.122.94 crore. Naturally, NPM has also come down from 8.71% to 5.62%. Its net loss on account of forex was at Rs.10.65 crore during Q4FY09. It has debited Rs.12.72 crore to hedging reserve as per the companies accounting policy.
Net sales was up 31% at Rs.2188.14 crore in FY09. Domestic sales grew by 37.9%. Micro irrigation remained its biggest revenue grosser and it showed a growth at 54%, PVC Pipes at 50% and Food at 33%. EBITDA was up 9.42% at Rs.391.06 crore. Its OPM margin has shown a fall from 21.39% to 17.87% for FY09.
On April 09, 2009, the company has issued and allotted 1,997,780 Equity Shares at Rs.360.40 per share (face value of Rs 10 each) to International Finance Corporation, Washington, DC, USA on preferential basis. The amount raised by such issue is Rs.72 crore.
The company had a huge interest outgo in FY09, it was up 38% at Rs.156.15 crore. This to a large extent also dented the margins. But the company has now stated that it has a more comfortable cash position and it has borrowed at 7.5% as against the earlier 13%, so in FY10 it expects the interest burden to come down.
In FY10 also the company's main revenue earner would remain micro irrigation and it expects this to go up substantially as many projects sanctioned by the World Bank – two in Himachal Pradesh and some programs in Madhya Pradesh, Chattisgarh and Haryana.

Agriculture is one of the sectors, which is recession proof.
FY10 for Jain IRRIGATION would be much better. Think about it.
Thanks