Centrum has the following Review on JaiCorp [Mukesh Ambani backed Anand Jain runs this company]Jai Corp Ltd. (JCL) is a tactical play on urban infrastructure and real estate sector. The company is trading at 42% of its book value of Rs.132 per share and is available at 7.2x its consolidated FY2012 EPS of Rs.7.7 per share. Further, the company has very low leverage with consolidated debt of just Rs.45 crore as compared to its net worth of Rs.2,357 crore and cash and investments of Rs.320 crore as on March 2012. In addition to its current investments, it holds 35.22 lakh share of Reliance Industries which is worth Rs.271 crore or 27% of current market cap. We advise investors to BUY the stock from tactical perspective in the medium term.
The stock is currently trading at 52% below its 52 week high and 23% above its 52 week low and 96% below its all time high of Rs.1,450 per share in Jan 2008. Considering the recent rally in real estate and infra stocks, we believe that Jai Corp is likely to soon join the movement.
