Seven Companies That Will Gain From RBI Rate Cut

Jubilant Lifestyle: When you have high sales rate but at the same time high expenses then you have nothing to show in the profit book. This is the problem with Jubilant Lifestyle, a company that does contract manufacturing for pharmaceutical companies. For them to get a marginal relief they really need the RBI to cut interest rates.

ITNL: A private company that is dedicated to development of roads and society has its presence in more than 16 states with over 27 road projects. The biggest fear in such companies and the project they do is the delay in completion of the work. Thus, with the number of delayed projects over the years, ITNL has high expense rate thus increasing their interest debt. However, the company’s projects are coming along the way and show a promise of increase in profit.  So, they still have time to revive themselves and the cut in interest rate is sure to boost their profits.

Jain Irrigation: It seems like this company is having everything the easy way with a report of expected revenue of up to 12-15 percent for FY16. This is huge because they also will be spending less on raw materials like polymer as the price is expected to reduce. But if the RBI cuts interest rates then they will surely hit jackpot because it will raise their net margin. The interest rate debt burden they have at the moment is stagnant, which means cut rates will give them the chance to clear all the debts. So, this is a company to surely invest in at the moment.

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