Morgan Stanley downgrades Jain Irrigation,cites margin pressureshttps://indianexpress.com/article/business/market/morgan-stanley-downgrades-jain-irrigation-cites-margin-pressures/

Morgan Stanley downgrades Jain Irrigation,cites margin pressures

Jain 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.