Jain Irrigation was recommended by us to our members on 18th November, 2020, at Rs. 17.75, and thereafter multiple times in query and other sections, making them almost dole money in less than 8 months. Post good Q4FY21 numbers, share price has been rising one way from 1st July, 2021 having risen from Rs. 26 to Rs. 33, a rise of 27 % seen in a week or so.
Q4 financials can be seen and read by all. But it is fine print, which is important, which is seen kicker f share price from here, few of which are as under -
> Debt of US $ 200 million (approx. Rs.1,500 crore) has been restructured, with final approval to be seen on 26-7-2021.
> Jain American Holding USA, implemented Resolution plan on 26-6-2021.
> Jain Farm Fresh Foods Ltd, implemented Resolution plan on 24-5-2021.
> Promoters of the company are in active talks with the domestic lenders, for resolution of overdue Term Loan & Working Capital finance of Rs. 3,758 crore, with hopes of an early resolution.
> Total finance facilities, including working capital, availed by the company, as at 31-3-21, are at approx Rs, 7,860 cr. (Term Loan Rs. 2,500 cr, Working Capital Rs. 3,500 cr., FCCB of Rs. 1,860 cr). This is backed by Inventories, Receivables, Cash & Bank and Other Financial assets of over Rs. 5,200 cr.
> Jain Farm Fresh Foods USA, sold Dehydrated Ingredient Business, having earned a gain of Rs. 66.27 cr, booked as Other income in Q4FY21.
> JISL System SA, sold Machines Yvonand SA & Protool AG, having earned a gain of Rs. 55.25 cr, booked as Other income in Q4FY21.
All this clearly hints of aggression and determination of the promoters to bring back the company to its old glory.
All 3 Business Verticals of the company viz. Micro Irrigation, PVC Pipe and Agri Processing, each one is having worth and valuation potentials of many companies listed on BSE & NSE, engaged only in each of these verticals.
This is not a buy recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.