Jain Irrigation seems a good buy though at lower levels

Jain Irrigation is World's second largest organization in Micro-irrigation sector and has given exceptionally good results in the last few quarters.

Though after the split occurred in Oct, the stock is trading in a range with some negative bias probably due to more equity now floated into the market. The negative sentiments of the overall market is also putting pressure on the stock.

The stock traded @ PE of 30 times last year at EPS of 7 Rs (adjusted) citing the robust business model of the company. The company has managed to live upto investor sentiments but its rising interest costs would surely bring the bottom line into pressure in the comg days.

With potential EPS of around 8.5 Rs this year and PE of 25X (lower due to current market sentiments), the probable target price comes at 215 Rs.

Fundamentals of the company remains intact and can be bought @ 170-180 Rs with target price of 215-225 levels.