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Jaiprakash Associates
Very Good Stock limited Downside
Posted by :
BullSheetRulesTracked by: 0 Boarder
Just for info:
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JP Associates: Not so concrete
Shobhana Subramanian & Varun Sharma / Mumbai September 20, 2008, 0:26 IST
The Street seems to be worried about the company’s expansion plans for cement at a time when demand is expected to slow down.
The Jaiprakash Associates stock fell to a 52 week low in intra-day trades earlier this week. Since it became a part of the BSE Sensex, in mid-March 2008, the stock has come off by 46 per cent –a huge underperformer given that the Sensex has lost just 15.5 per cent during that time. That is somewhat surprising because the Rs 3,985 crore firm did fairly well last year to post an increase in sales of 14.5 per cent and a rise of 47 per cent in net profits.
What seems to be worrying investors is the cement business which contributes about half the company’s revenues. Last year JPA spent about Rs 3,080 crore on capital expenditure of which three –fourths or Rs 2,270, was spent on adding cement capacity--JPA plans to double capacity to nearly 20 million tonnes this year.
However, according to industry watchers, demand for cement is coming off slowly and is expected to grow by just 10-12 per cent over the next three years. It could, therefore, lag supply which is expected to increase by 20-22 per cent compounded annually over FY08-11.
Thus, prices could come off by 8-12 per cent over the next 12-15 months. In the June 2008 quarter, cement and cement products, at JPA, grew by 13 per cent y-o-y with volumes increasing by about 11 per cent and realisations up 1.7 per cent. The segment margin came off by 280 basis to 30.3 per cent y-o-y.
JPA`s construction business should do well since it is executing hydro power projects for a capacity of 4,290 MW. It currently operates 700 MW of hydro power capacity and the order book stands at around Rs 12,000 crore. In the June 2008 quarter, construction and engineering grew 17 per cent with the segment margin up 180 basis to 21 per cent y-o-y.
JPA`s promoters have recently allotted themselves 120 million warrants —about 9 per cent of fully diluted equity-— in addition to the 50 million warrants, priced at Rs 397 per share, allotted in January 2008, and due for conversion in July 2009. At the current price of Rs 135 the stock trades at 24.5 times its estimated FY09 earnings....
In reply to:
Very Good Stock limited Downside
Posted by : BullSheetRules
JP associates will come to 30-35 level if no BULL operator come into picture
Gud luk & happy investing! 
JP Associates slides 9.8%
Posted by : vkk43Tracked by: 1 Boarder
Future prospects for this share look good for LT investment for 2-3 years but presently, its undertone is bearish....
In reply to:
JP Associates slides 9.8%
Posted by :
kchandanm
what is the future prospects of Jaiprakash Associte?
Very Good Stock limited Downside
Posted by : vkk43Tracked by: 0 Boarder
Thanks for your optimism. Keep it up. Jan-Feb. is a bit far, looking to the present market conditions. Havings said this, our market will definitely improve, if past is any indication, but it may take sometime this time. ...
In reply to:
Very Good Stock limited Downside
Posted by : libran.
Well markets can behave irrational but company`s fundamentals do not change over night, I have been screaming always to buy this share as it is a very good stock, diversified business and if one has to have belief in india growth story this stock is very good pick in infrastructure space, RJ bought Nagarjuna construction at 130-140 levels and stock is now at 55 levels, such stocks will bounce back sharply and I don`t know but my gut feeling tells me that market will bounce sharply too, I could be wrong but it is just a feeling that in Jan - Feb we will be trading much higher... happy investing
Very Good Stock limited Downside
Posted by : libran.Tracked by: 0 Boarder
Well markets can behave irrational but company`s fundamentals do not change over night, I have been screaming always to buy this share as it is a very good stock, diversified business and if one has to have belief in india growth story this stock is very good pick in infrastructure space, RJ bought Nagarjuna construction at 130-140 levels and stock is now at 55 levels, such stocks will bounce back sharply and I don`t know but my gut feeling tells me that market will bounce sharply too, I could be wrong but it is just a feeling that in Jan - Feb we will be trading much higher... happy investing...
In reply to:
Very Good Stock limited Downside
Posted by : vkk43
Really it is a great news for this share. Normally, many promoters would not go for conversion of their warrants at such a high premium when the market price of their shares fell so sharply. It is their confidence about the company which has enabled the promoters to go for such conversion. Thanks for this info. Keep it up.
One can safely have confidence in this scrip at current valuation, though further weakness depending upon market condition may still b there. For LT investment, it could b OK.
Very Good Stock limited Downside
Posted by : vkk43Tracked by: 0 Boarder
Really it is a great news for this share. Normally, many promoters would not go for conversion of their warrants at such a high premium when the market price of their shares fell so sharply. It is their confidence about the company which has enabled the promoters to go for such conversion. Thanks for this info. Keep it up.
One can safely have confidence in this scrip at current valuation, though further weakness depending upon market condition may still b there. For LT investment, it could b OK....
In reply to:
Very Good Stock limited Downside
Posted by : libran.
Jaiprakash Associates Limited has informed the Exchange that the Company has today, the October 10, 2008 allotted 1,00,00,000 Equity Shares of Rs.2/- each for the cash at premium of Rs.395/- per share to Jaypee Ventures Private Limited., a Promoters` Group Company, against the equal number of Share Warrants issued to them at the rate of Rs.397/- per warrant. This is a new or corporate announcement from NSE wensite.. if I understadn correct they have already gone and converted one crore warrants into equity shares... at 397 rupees... this stock seems to be undervalued at this time. Happy investing
Very Good Stock limited Downside
Posted by : libran.Tracked by: 0 Boarder
Jaiprakash Associates Limited has informed the Exchange that the Company has today, the October 10, 2008 allotted 1,00,00,000 Equity Shares of Rs.2/- each for the cash at premium of Rs.395/- per share to Jaypee Ventures Private Limited., a Promoters` Group Company, against the equal number of Share Warrants issued to them at the rate of Rs.397/- per warrant. This is a new or corporate announcement from NSE wensite.. if I understadn correct they have already gone and converted one crore warrants into equity shares... at 397 rupees... this stock seems to be undervalued at this time. Happy investing...
In reply to:
Very Good Stock limited Downside
Posted by : vkk43
Promoters hv already gone for conversion at 397/- or are going for conversion at 397/ and if so when? If not yet, they may not go for conversion at this rate and the advance of 10% paid by them can b forfeited.
Very Good Stock limited Downside
Posted by : vkk43Tracked by: 0 Boarder
Promoters hv already gone for conversion at 397/- or are going for conversion at 397/ and if so when? If not yet, they may not go for conversion at this rate and the advance of 10% paid by them can b forfeited....
In reply to:
Very Good Stock limited Downside
Posted by : libran.
Hello Ognale, just to help you understand company promoters have converted share warrants at very very significant premium to its current market price, many companies like Nagarjuna Construction (for example) had a warrant conversion due at Rs 217 and they did not excercise the options as share is available at much cheaper price in market so what prommoters do instead is buy stock from market at much lower price to increase there stake than converting warrants into equity, Jai Prakash Associates promoters in spite knowing that there share price is available at a dirt cheap price in the market still went for a warrant conversion at a much significant price which is 397 where share is available at just 74 in the market sends a message to investors that they are very confident about company`s performance going forward or I can say “The promoters have a good faith in the company’s prospects and so would go for conversion in any case for example at Rs 397 when share is just available at 74. Even though market conditions are not good, it should not be a problem as the company’s fundamentals are strong,” I am bullish about this stock and see miimum of 150 levels in next 6 months... happy investing.
Very Good Stock limited Downside
Posted by : libran.Tracked by: 0 Boarder
Hello Ognale, just to help you understand company promoters have converted share warrants at very very significant premium to its current market price, many companies like Nagarjuna Construction (for example) had a warrant conversion due at Rs 217 and they did not excercise the options as share is available at much cheaper price in market so what prommoters do instead is buy stock from market at much lower price to increase there stake than converting warrants into equity, Jai Prakash Associates promoters in spite knowing that there share price is available at a dirt cheap price in the market still went for a warrant conversion at a much significant price which is 397 where share is available at just 74 in the market sends a message to investors that they are very confident about company`s performance going forward or I can say “The promoters have a good faith in the company’s prospects and so would go for conversion in any case for example at Rs 397 when share is just available at 74. Even though market conditions are not good, it should not be a problem as the company’s fundamentals are strong,” I am bullish about this stock and see miimum of 150 levels in next 6 months... happy investing....
In reply to:
Very Good Stock limited Downside
Posted by : ognale
I dont understand the company`s announcement today. Can anybody please explain what will be the impact on trade? i am presently holding 100 shares @ 85. please advice.
JP Associates slides 9.8%
Posted by : libran.Tracked by: 1 Boarder
JAIPRAKASH ASSOCIATES
RESEARCH: MERRILL LYNCH
RATING: BUY
CMP: Rs 116
Merrill Lynch has maintained a ‘buy’ rating on Jaiprakash Associates (JPA), but has reduced the target price to Rs 335 from 395. This is because it has reduced the value of Yamuna Expressway due to indefinite delay in the proposed Greater Noida International Airport, higher expressway cost and lower real estate realisations till FY11E.
This can impact development of realty at three (3,750 acres) of the five land parcels (6,250 acres) of JPA’s Yamuna Expressway located in and around Noida airport. Hence, Merrill Lynch has removed these parcels from the valuations till visibility emerges.
It has also factored in a higher cost of the expressway at Rs 7,400 crore on higher land/construction costs and lower realisation assumptions on the Noida land bank till FY11E on continued weakness in the realty market in National Capital Region (NCR).
Key triggers are: a) Improved macro situation — lower inflation/rates; b) Execution of power/infrastructure projects on time; and c) Monetisation of realty land bank.
...
In reply to:
JP Associates slides 9.8%
Posted by : kchandanm
what is the future prospects of Jaiprakash Associte?
JP Associates slides 9.8%
Posted by : kchandanmTracked by: 1 Boarder
what is the future prospects of Jaiprakash Associte?...
In reply to:
JP Associates slides 9.8%
Posted by : MMB Messenger
Jaiprakash Associates has touched a 52-week low of Rs 71.90. At 2:44 pm, the share was quoting at Rs 82, down Rs 8.95, or 9.84%. The company's promoter company has converted 1 crore warrants at Rs 397 per share, reports CNBC-TV18. It was trading with volumes of 7,222,306 shares. On Wednesday the share closed down 9.91% or Rs 10 at Rs 90.95.
JP Associates slides 9.8%
Posted by : MMB MessengerTracked by: 1 Boarder
Jaiprakash Associates has touched a 52-week low of Rs 71.90. At 2:44 pm, the share was quoting at Rs 82, down Rs 8.95, or 9.84%. The company's promoter company has converted 1 crore warrants at Rs 397 per share, reports CNBC-TV18. It was trading with volumes of 7,222,306 shares. On Wednesday the share closed down 9.91% or Rs 10 at Rs 90.95....
Sell JP Associates Down Target 40
Posted by : GuestTracked by: 0 Boarder
Guys who will like to save your money can exit in this counter for a target of 40 or go heavily short in this counter.
Happy Investing...
Next level @61
Posted by :
devender.rvTracked by: 0 Boarder
watchout for Level 61 on the dowm side...
Very Good Stock limited Downside
Posted by : vkk43Tracked by: 0 Boarder
I too feel so but one cannot be so sure when the market starts tumbling down, no level remains and new lows become order of the day. Having said this, however, if there is not a sharp fall like today next week, most probably 50/- target for this share should hold. Let us wait and watch....
In reply to:
Very Good Stock limited Downside
Posted by : rahul_kh
Possibility of JPA going down further from current levels can`t be ruled out. But on the other hand, it will also not go down below 50 because at that level it would be 90% down from its year high and I`ve not seen any frontline stock so far which is down more than 90% from its peak price.
It has good assets and a strong order book
Posted by : nurav1984Tracked by: 0 Boarder
Story:The company has been hammered in the the past few months.From a high of 510 in january the company has cracked by more than 80% and is presently quoting at 100 odd levels.The company is also probably getting in the Ganga Expressway.They have got the Taj Expressway project, which is a very large project and as part of that project, they will get to develop close to 6,250 acres of land, 5 points across this highway that joins Agra and Noida. This is not there in the valuation as of now currently, it is not reflected and but it is something that will evolve over a period of time.According to the sources, Jaiprakash Associates will shift 45% stake in the Taj Expressway project to another company namely JP Infratech.In explanation the company stated that JP Infratech continues to be a 100 per cent subsidiary of the group.There was a need to boost the authorized capital of JP Infratech from Rs 200 crore to Rs 1,000 crore and Jaiprakash Associates subscribed the additional 35 crore shares at Rs 10 each, which represented 55 per cent of the capital.The company also clarified that it would go ahead with the initial public offering of its power subsidiary JP Power.
There lies no confusion at all and Jp associates should quote at a much higher price in the days to come.The company is also planning to double its cement capacity from 7million tonnes to 14 million tonnes to become one of the largest players in the cement sector.Investors have panciked and exited the company compltely,`buy at low sell at high mantra` or even `buy when others are selling and sell when others are buying` may work in these case now.Accumulate the counter as much as u can for limited downside but lot of upsides.
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