India Investment, Stocks, Credit Card and Retail Forum
Investments in Indian Equity and Research => Equity Investments, Fundamental Research and Sectors Review => Sensex and Nifty Company Analysis => Topic started by: sunil on October 05, 2012, 01:29:55 PM
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Edelweiss is extremely BULLISH on the Stock of Jaiprakash Associates. In a report it said,
Jaiprakash Associates (JPA) offers 78% upside from the current level driven by robust 99% surge in EBITDA, led by cement and power, and supported by real estate. At near‐trough EV/EBITDA of 8x, the EV is expected to rise 19%. With debt largely stable, we expect the
equity values to appreciate.
However, with commencement of projects and reduction of net debt/EBITDA, re‐rating can potentially provide additional upsides. Our sensitivity analysis depicts a downside of 15% while higher cement margin and volume offers 125% upside, indicating favourable riskreward. Ergo, we upgrade to ‘BUY’.
EPS expectation for FY 13 is Rs 1.1, Rs 6.2 for FY 14 and Rs 12.6 for FY 15.
Edelweiss has put a target price of Rs 147 on JaiPrakash Associates