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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Jaiprakash Associates Q1 results

Jaiprakash Associates Ltd has announced the following Un-audited results for the quarter ended June 30, 2009:

The Company has posted a Net profit of Rs 4911.80 million for the quarter ended June 30, 2009 as compared to Rs 1252.10 million for the quarter ended June 30, 2008. Total Income has increased from Rs 11946.80 million for the quarter ended June 30, 2008 to Rs 21168.60 million for the quarter ended June 30, 2009.

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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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Intraday Tips and Market outlook for 7th of May.

US markets ended quite higher.
Europe also ended higher.
Asia has opened higher.
Expect Indian Markets to open positive.
The support for the Sensex is 11678 and the resistance to the up move is at 12569-12857
Nifty: (3625) the support for the Nifty is at 3600 and the resistance to the up move is at 3735-3820

Day Trading Ideas -

Adlabs
Buy above 234 for targets of 239 and 244
Sell below 223 for targets of 219 and 215

DLF
Buy above 248 for targets of 255 and 259
Sell below 230 for targets of 224 and 219

JP Associates
Buy above 139 for targets of 142 and 145
Sell below 134 for targets of 131 and 128

MRPL
Buy above 53 for targets of 55 and 58
Sell below 49 for targets of 47 and 45

Happy Investing !

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Value Investing - Jaiprakash Associates.

Multibagger Tip - Jaiprakash Associates.
BSE Code: - 532532
CMP: - 65.85
Target: - 85 (3 - 4 months) Long term target - 140 (12 - 18 months)

This is one of the badly beaten up stock in this great bear market. this scrip had made a high of 510 this December 08 and now is down almost 85%.
Real estates have seen their worst days all thanks to the US sub prime crises.
What I think at the movement this is a good scrip to accumulate for long term view.
This company is engaged in the business of heavy civil engineering construction, expressways, cement and real estate and hospitality.
The performance of the company has been quite good.
One thing to notice is when there is any short covering in this sector which this script is the first to cherish.
JP Associates has a strong order book value of various Express highway more over it owns a fully owned subsidiary Himalian Express way.
One must buy this scrip in dips and book profits in sharp rise.

Happy Investing.

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