1. Our research team is bullish on the prospects of Jain Irrigation and same is also endorsed by Bank of America Merrill Lynch which has initiated a coverage on Jain Irrigation with a ‘buy’ rating and has given a price target of Rs 500 for the stock. Jain irrigation is a stock worth buying as company is foraying into the rural market with great strides.

2. Bank of America Merrill Lynch is of the view that it is going to show strong performance by virtue of strong revenue growth in domestic micro irrigation and changing business mix in favour of high margin businesses like agro processing.

3. Bank of America Merrill Lynch expects that Jain Irrigation strategy of changing business focus in favour of micro irrigation and agro processing to boost profit margins by 270 basis points and they are anticipating revenue contributions from these businesses to rise to 71% by FY11 and improve margins further by 60 bps despite declining profitability in plastic pipes and plastic sheets.
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