Our analysts recommend :
| Stock Name | JAIPRAKASH ASSOCIATES LTD |
| Recommendation | Accumulate |
| Target price | Rs.98 |
| Current Market Price | Rs. 89.15 |
| NSE symbol | JPASSOCIAT |
| BSE scrip code | JAIPRA |
Result Update: Jaiprakash Associates Ltd
- Revenues of the company in Q2FY13 came in line with our estimates, led by better than expected revenues from the construction and real estate divisions. Company has demerged the south and west cement plants and transferred it to Jaypee Cement Corporation Ltd; so correspondingly it has restated financials of Q2FY12. perating margins in Q2FY13 stood strong at 26.5% and primarily led by strong margins in construction and real estate division.
- Net profit for the quarter was slightly ahead of our estimates led by better than expected operating margins.
- At current price of Rs 91, stock is trading at 27.7x and 24.8x earnings and 12.0x and 11.9x EV/EBITDA on FY13 and FY14 estimates respectively. We maintain our FY13 estimates and also introduce FY14 estimates. We had upgraded the stock to BUY in our last recommendation at Rs 68. Owing to limited upside from the current levels, we now downgrade the stock to ACCUMULATE with a revised price target of Rs 98 on FY14 estimates (Rs 87 earlier).
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