Skipper is really on a very good footing today morning. The stock hit a new 52-week high at Rs.277 and remains firmly in the green.

There are two reasons, Firstly, it announced that it has entered into a JV for drip irrigation business with MetzerPlas Cooperative Agricultire Organisation, Isreal. This company is one largest and most specialised manufacturers of drip irrigation solutions in Israel.

The other news, the Q2FY18 results was not so good. On a 32% (YoY) rise in revenue at Rs.516 crore, the company posted a 30% drop in net profit at Rs.23 crore. EBITDA fell 7% at Rs.68 crore while margins dropped by a huge 560 bps to 13.2%.

The main reason for the fall in profits was the 69% jump in expenses at Rs.76 crore – 15% of the revenue.

The market though has decided to concentrate only on the good news  of the JV and selectively ignored the results.