Jaiprakash Associates hits 52-week low after downgrade by foreign bank

Jaiprakash Associates lost 5.48% to Rs 47.40 at 15:11 IST on BSE, after a foreign bank downgraded the stock to sell from hold citing higher-than-expected debt

Meanwhile, the BSE Sensex was down 224.92 points, or 1.11%, to 20,085.72.

On BSE, 36.19 lakh shares were traded in the counter as against an average daily volume of 23.57 lakh shares in the past one quarter.

The stock hit a 52-week low of Rs 46.70 in intraday trade today, 24 July 2013. The stock hit a high of Rs 49.75 so far during the day. The stock had hit a 52-week high of Rs 106.75 on 12 December 2012.

The stock had underperformed the market over the past one month until 23 July 2013, falling 13.01% compared with the Sensex's 8.14% rise. The scrip also underperformed the market in past one quarter, sliding 35.91% as against 5.85% rise in the Sensex.

The large-cap company has an equity capital of Rs 443.81 crore. Face value per share is Rs 2.

A foreign bank downgraded Jaiprakash Associates to sell from hold and lowered its sum-of-the-parts target price, citing higher-than-expected debt and called the company as maybe the most expensive cement stock. Jaiprakash Associates' consolidated debt to equity ratio stood at 4 as on 31 March 2013. On a consolidated basis, the company's total debt was Rs 63110.98 crore as on 31 March 2013.

The bank also cut its year ended 31 March 2014 earnings estimates by 14% and that of year ended 31 March 2015 by 9%, citing a high degree of operating leverage in a weak cement demand environment.

Jaiprakash Associates declares Q1 results on 29 July 2013. The company's net profit fell 56.5% to Rs 123.50 crore on 4% decline in total income to Rs 3936.35 crore in Q4 March 2013 over Q4 March 2012.

Jaiprakash Associates is a diversified company with business interest in construction, power, cement, real estate and hospitality.

Powered by Capital Market - Live News