Shares of this company zoomed over 14 per cent, net profit surged 495 per cent; heres why!
The scrip has surged over 35 per cent in just the last two trading sessions.
On Wednesday, the shares of Jain Irrigation Systems Ltd (JISL) soared over 14 per cent as the company announced that it will merge its international business with Rivulis, a part of Singapore-based investment fund Temasek, to be the world's second-largest irrigation player.
The deal is likely to be concluded in the next six months and the combined entity will have revenue of $750 million. Jain Irrigation will hold 22 per cent of the merged entity with Temasek, owning the remaining 78 per cent. Managing Director Anil Jain said that JISL will merge an irrigation business valued at Rs 4,200 crore with Rivulis, of which, Rs 2,700 crore will be used to repay its all-overseas debt, and Rs 200 crore will come to the parent company.
The scrip has surged nearly 35 per cent in just the last two trading sessions and delivered returns of 65 per cent over the period of one year. Recently, the company announced that it recorded net sales and other operating income of Rs 2,083.61 crore thereby, posting a growth of 16.16 per cent from Rs 1,793.80 crore registered in Q4FY21. Q4FY22 recorded a net profit of Rs 287.28 crore in comparison with the net profit of Rs 48.28 crore in the same quarter of the previous year, surging 495.03 per cent.
The company is engaged in providing solutions in agriculture, piping, and infrastructure through the manufacturing of micro-irrigation systems, pipes & plastic sheets, agro-processed products, renewable energy solutions, and other agricultural inputs.
Keep a close eye on this scrip for the upcoming sessions.