Jain Irrigation: News alert analysis

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Jain Irrigation Systems, a leading manufacturer of irrigation systems, pipes & fittings and plastic sheets, witnessed a surge in share price on Wednesday (April 19) after the company announced acquisition of two US based micro-irrigation dealers. The company has agreed to acquire 80 percent stake in Agri-Valley Irrigation Inc (AVI) and Irrigation Design and Construction Inc (IDC) for $48.50 million.

“The merger will help Jain Irrigation to forward integrate itself in the value chain and build direct relationships with growers. This fits into company’s strategy to participate in end to end project solutions to harness company’s unique capabilities in integrated irrigation project solutions,” the company said.

Jain Irrigation witnessed a huge buying interest in the stock market following positive news update. The stock jumped 8.50 percent to settle at Rs. 107.90 on Wednesday. The volume of shares spiked 8.5 times over the past 30-days average.  

Heckyl news engine issued news alerts about aforesaid acquisition at 11:16 am on April 19 immediately after the company issued notification to the Bombay Stock Exchange (BSE). The news alert was issued ahead of major price action. At 11:16 am, the stock price was at Rs. 102.05.

Jain Irrigation_19-04-17_3
[Image 1: Corporate Announcement – Company Screen]

Shares of Jain Irrigation picked up momentum after the mainstream media featured the news coverage on the aforesaid acquisition. Heckyl issued first news alert from mainstream media at 11:37 am, when the stock price was at Rs. 102.78. Subsequently, the stock witnessed a steep surge in price to Rs 108.90 at 12:07 pm. Later, the stock touched day’s high of Rs. 109.90 at 12:34 pm.   

Jain Irrigation_19-04-17_2
[Image 2: Trending News – Company Screen]

News update on the acquisition of two US based micro-irrigation dealers by Jain Irrigation generated positive sentiment on April 19. Heckyl sentiment score for the company jumped to 100 on Wednesday from 0 on the previous day.

Jain Irrigation_19-04-17_1
[Image 3: Sentiment Chart]

Intra-day Trading Opportunity:

Heckyl news alert has provided ample time to react on the news update. By using our news analytics platform, a trader could have spotted intra-day trading opportunity in Jain Irrigation. One could have bought the stock around Rs. 102.5 in the late morning trade and then sold it subsequently (after the news went viral) for about Rs. 108.5, netting a profit of Rs 6 a share or 5.85 percent.

11-16 pm- 1st alert from Heckyl Corporate announcements
[Image 4: Share Price Chart]

There are plenty of such opportunities available every day, so don’t wait start using Heckyl News Analytics platform now.

To know more about Heckyl’s News Analytics platform, email us at info@heckyl.com

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