Morgan Stanley downgrades Jain Irrigation, cites margin pressures

Oct 09 2013, 11:40 IST
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SummaryJain Irrigation shares were down 1 per cent.

Morgan Stanley downgrades Jain Irrigation Systems Ltd to 'equal-weight' from "overweight" and cuts its target price to 66 rupees from 80 rupees citing margin pressures in its micro-irrigation business.

The investment bank says profitability in Jain's micro-irrigation business would remain under pressure over the medium term due to a "sharp" rise in input costs, "insufficient" price hikes and an increasing proportion of sales from the low margin non-banking financial company unit.

Jain Irrigation shares were down 1 percent at 0554 GMT.

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