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JP Associates wins orders worth `2,079cr
JP Associates (JAL) has been awarded two contracts by Punatsangchhu-II Hydroelectric
Project Authority, Bhutan, for the construction of 990MW Punatsangchhu-II hydro-electric
project. This project is being implemented jointly by the Royal Government of Bhutan and
the Government of India. The first contract valued at `1,224cr involves diversion tunnel,
dam intake and desilting arrangement, including hydro-mechanical works and highway
tunnel. The second order worth `855cr is for head race tunnel from surge shaft end, surge
shaft, butterfly valve, chamber, pressure shafts, power house and tailrace tunnel, including
hydro-mechanical works.
We have valued JAL’s cement business at 6.5x EV/EBITDA (`67.4/share) and construction
division at FY2013E target EV/EBITDA multiple of 6.5x (`32.1/share). We have valued its
power and real estate businesses on mcap basis (giving 15% holding company discount),
which contribute `61.8/share to our target price. The hotel segment contributes
`0.8/share. Treasury shares (`7.2/share) have been valued at the current market price,
whereas net debt is accounted for on a per share basis in our valuation at `61.8.
We maintain our Buy recommendation on the stock with an SOTP target price of `108,
implying an upside of 41.4% from current levels.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
JP Associates wins orders worth `2,079cr
JP Associates (JAL) has been awarded two contracts by Punatsangchhu-II Hydroelectric
Project Authority, Bhutan, for the construction of 990MW Punatsangchhu-II hydro-electric
project. This project is being implemented jointly by the Royal Government of Bhutan and
the Government of India. The first contract valued at `1,224cr involves diversion tunnel,
dam intake and desilting arrangement, including hydro-mechanical works and highway
tunnel. The second order worth `855cr is for head race tunnel from surge shaft end, surge
shaft, butterfly valve, chamber, pressure shafts, power house and tailrace tunnel, including
hydro-mechanical works.
We have valued JAL’s cement business at 6.5x EV/EBITDA (`67.4/share) and construction
division at FY2013E target EV/EBITDA multiple of 6.5x (`32.1/share). We have valued its
power and real estate businesses on mcap basis (giving 15% holding company discount),
which contribute `61.8/share to our target price. The hotel segment contributes
`0.8/share. Treasury shares (`7.2/share) have been valued at the current market price,
whereas net debt is accounted for on a per share basis in our valuation at `61.8.
We maintain our Buy recommendation on the stock with an SOTP target price of `108,
implying an upside of 41.4% from current levels.
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