Jain Irrigation Systems Limited

Industrials — Conglomerates · NSE

₹26.90−₹0.12 (−0.44%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Jain Irrigation Systems Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jain Irrigation Systems Limited manufactures and sells precision-irrigation systems in India, Europe, North America, and internationally. The company operates through Hi-Tech Agri Input Products; Plastic Division; and Agro Processing Division segments.

IndustryConglomerates

SectorIndustrials

Employees9,090

Annual revenue₹6,366 Cr

How does it make money?

Turns over ₹6,366 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 9,090 employees supports ₹70.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin12.5%

Net margin-0.4%

Revenue / employee₹70.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 6.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE6.1%

ROE-0.4%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +12% while net margin moved -103% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+12%

Margin effect-103%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 16.4 points over the period

Quality vs. Valuation

Company Quality

39/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.34x

EV/EBITDA

7.7x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 16.0% to -0.4% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 2 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹25 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 4.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 16.0% to -0.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 11%✓ 12.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 4.0% CAGR
Latest reported year was -2.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹265 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹1,973 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.74

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.4%

Weak

Weak capital efficiency

ROCE

6.1%

Weak

Low return on total capital employed

Debt/Equity

0.72x

Moderate

Moderate leverage

Revenue Growth (YoY)

-2.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-173.4%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹265 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹26.9

Operating Margin

6.0%

Average

Average margins

Net Margin

-0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.16

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

28.0 / 28.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,665 Cr	₹6,050 Cr	₹5,677 Cr	₹6,366 Cr	+4.0%
EBITDA	₹741 Cr	₹775 Cr	₹703 Cr	₹799 Cr	+2.5%
EBITDA Margin	13.1%	12.8%	12.4%	12.5%	—
PAT (Net Profit)	₹828 Cr	₹45 Cr	₹34 Cr	-₹25 Cr	—
EPS	₹13.08	₹0.64	₹0.48	₹-0.34	—
ROE	16.0%	0.8%	0.6%	-0.4%	—
ROCE	5.2%	7.2%	6.1%	6.1%	—
Total Debt	₹3,967 Cr	₹4,040 Cr	₹4,048 Cr	₹4,306 Cr	+2.8%
Free Cash Flow	-₹115 Cr	₹307 Cr	₹548 Cr	₹265 Cr	—

🟢 Revenue has grown at 4.0% a year over 3 years.

🟢 EBITDA has grown at 2.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.5% over 3 years.

🔴 PAT (Net Profit) has turned negative, from ₹828 Cr to -₹25 Cr.

🔴 EPS has turned negative, from ₹13.08 to ₹-0.34.

🔴 ROE has fallen from 16.0% to -0.4% over 3 years (-16.4 pts).

🟡 ROCE has held roughly flat at 6.1% over 3 years.

🔴 Total Debt has grown at 2.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹115 Cr to ₹265 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12,155 Cr

Total Liabilities

₹6,158 Cr

Total Debt

₹4,306 Cr

Cash & Equivalents

₹122 Cr

Operating Cash Flow

₹619 Cr

Capex

-₹354 Cr

Shareholding (proxy)

Institutional Holding

0.9%

Insider Holding

42.7%

Corporate Actions

Ex-Dividend Date

12 Sept 2019

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed5 general

Jain Irrigation Systems 52 Week Low Streak and Valuation

Univest, 13 Oct

Jain Irrigation plans ₹690 crore NCD repayment via internal accruals

scanx.trade, 10 Aug

Jain Irrigation Systems Ltd leads losers in 'A' group

Business Standard, 22 Sept

Jain Irrigation Systems shares rally 14% as firm commissions new biochar plant in Maharashtra

Upstox, 03 JunCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Why Jain Irrigation Systems Share Price is Rising

Equitymaster, 04 Jun

Jain Irrigation Systems Ltd is Rated Sell

MarketsMojo, 13 Oct

Watch Items

Revenue growth is negative (-2.4%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.7/20

🟡Financial HealthAdequate11.7/20

🔴GrowthWeak7.6/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.1/15

🔴RiskHigh4.4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 11%12.5%
✗Debt / EBITDA falls below 3x5.4x
✗Interest cover stays above 3x1.0x
✗Revenue growth stays above 4% a year4.0% CAGR
✓Free cash flow remains positive₹265 Cr