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JP Associates extends fall on brokerage downgrade

Deutsche Bank downgraded the stock to sell from hold citing higher-than-expected debt and reduced the price target to Rs 42.

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SI Reporter Mumbai
Last Updated : Jul 25 2013 | 11:31 AM IST
Jaiprakash Associates has tanked 9% to Rs 43, extending its Wednesday’s 6% fall, after Deutsche Bank downgraded the stock to sell from hold citing higher-than-expected debt. A foreign bank has reduced target price on Jaiprakash Associates to Rs 42 from Rs 55.

Jaiprakash Associates' consolidated debt to equity ratio stood at 4 as on March 31, 2013. On a consolidated basis, the company's total debt was Rs 63,111 crore as on March 31, 2013.

Meanwhile, the company is schedule to announce its April-June (Q1) earnings on July 29, 2013.

“Jaiprakash Associates is expected to have a subdued quarter, with cement volumes expected at 3.7mt, declining sequentially from 4.0mt. Real estate revenues are also expected to decline post a robust Q4FY13,” says analyst at Edelweiss Securities in quarterly results preview.

The stock opened at Rs 45.75 and hit a low of Rs 42.50, its lowest level since March 2009 on BSE. A combined 27.4 million shares have changed hands on the counter till 1130 hours on BSE and NSE.
 

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First Published: Jul 25 2013 | 11:29 AM IST

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