Buy JP Associates, target of Rs 250: IIFL

IIFL has recommended a buy rating on Jaiprakash Associates with a target price of Rs 250 in its August 24, 2009 research report.

"Jaiprakash Associates is well set to be among the top five players in power, cement and real estate in India. Doubling of cement capacity in three years, launch of 13m sq ft residential projects in two years and expeditious award of thermal power projects to established E&C players lend credibility to the group’s ambitious expansion plans. Treasury stocks in the parent company and consolidation of all power assets under the listed subsidiary (Jaiprakash Hydropower Limited, or JHPL) provide funding flexibility. More than doubling of cement volumes over FY09-11 and peak construction at captive projects, we estimate, should yield 44% earnings CAGR over FY09-11, similar to growth rates achieved over FY05-09. We initiate with 'BUY' and an SOTP-based target price of Rs 250 per share. At our target price, the standalone entity would be valued at P/E of 8.4x FY10ii and 6.4x FY11ii," says IIFL's research report.
Source : Money Control

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Hold JP Associates, target of Rs 266: Sharekhan

"In Q1FY2010 JP Associates Ltd (JAL) has reported strong top line growth for all its business verticals. The reported bottom line of the company grew by 2.9x year on year (yoy) due to one-time items. We continue to value JAL using SOTP methodology and value the stock at Rs 266 per share. We have now rolled over our target multiple for cement and E&C business to FY2011. We value the company’s cement business at 6x EV/EBITDA, this implies EV/tonne of US$100 per tonne (based on our capacity expectation of 19.5MTPA in FY2011). For the construction division, we have assigned target EV/ EBITDA multiple of 6x, which is at over 50% discount to that of Larsen & Toubro. For the real estate projects, we have valued Jaypee Greens and Taj Expressway at 1x of its NAV, given the early signs of revival in demand and overwhelming response for JAL’s projects during the quarter."
Source : Money Control.

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Buy JP Associates with stoploss of Rs 194: Nirmal Bang

Nirmal Bang has advised traders to buy JP Associates with stoploss of Rs 194.

“Huge delivery volume was witnessed in JP Associates. Buy & hold the scrip with stoploss of Rs 194 or Rs 187 for a target of Rs 223 and Rs 232,” said the technical note.

Source : Economic Times

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