Get technical stocks tips totally free, which are technically analyzed by our expert. And also get "Free Technical Analysis Courses" on this blog.
Sunday, June 10, 2012
Hold stocks of Jaiprakash Associates
"Jaiprakash Associates Ltd reported 3.1% yoy increase in revenues to Rs 4,026.4 crore as against Rs 3903.9 crore reported in the previous corresponding quarter. However, EBITDA for the quarter stood at Rs 1019.4 crore, up by 21% yoy, driven by strong construction margins. The net profit stood at Rs 283.8 crore, down 6.5% yoy led by lower other income, higher interest and depreciation costs."
"Cement division’s revenues registered a 8% yoy and 22% qoq growth to Rs.1,686.7 crore on the back of higher dispatches of 5.8 mt (+38.6% yoy, 20.3% qoq). Volume growth was on the back of the recently commissioned cement plants. The EBIT margins for the cement division stood at 13%, down 200 bps on the back of higher depreciation and high raw material expenses."
"Robust assets and strong execution capability defines JP Associates, However, servicing of the huge debt remains a major concern on the stock. In addition, the forthcoming FCCBs repayment adds to the woes. The ability to repair balance sheet is the key to sustain the stock price. However, we are hopeful that the management through either stake sale or divestment of non-core assets would able to reduce its debt. Further, current proposition for prepayment of FCCBs, augur well for the company. At the CMP of Rs 62, the stock is currently trading at 10.2x and 8.4x its FY13 and FY14 consensus earnings estimates, we recommend a HOLD on the stock," says Ventura Securities research report.
Subscribe to:
Post Comments (Atom)
-
Lupin’s Q2FY17 revenues were in-line with our estimates. Revenues grew by 32% YoY to INR 42.1 bn (as compared to our estimate of INR 41.9 b...
-
Volume grew by 4.2% QoQ, best in last 12 quarters. The company expects strong volume momentum to continue despite the mixed view on clie...
-
Neeraj Deewan, Quantum Securities told CNBC-TV18, “I would not really buy metals right now because I need to get lot more clarity regard...
No comments:
Post a Comment