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Deutsche Bank downgrades JP Associates to 'sell'

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Reuters
Last Updated : Jul 24 2013 | 1:35 PM IST

Reuters Market Eye - Deutsche Bank downgrades Jaiprakash Associates Ltd to "sell" from "hold" and cuts its sum-of-the-parts target price to 42 rupees from 55 rupees, citing higher-than-expected debt and calling the company "maybe the most expensive cement stock."

The bank says the company's consolidated debt of 612 billion rupees came in at 10 billion rupees above its estimates.

Deutsche also cut its FY14 earnings estimates by 14 percent and that of FY15 by 9 percent, citing a "high degree of operating leverage" in a "weak cement demand environment."

Jaiprakash Associates shares were down 5.48 percent at 47.40 rupees at 1.13 p.m.

(Reporting by Abhishek Vishnoi)

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First Published: Jul 24 2013 | 1:24 PM IST

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