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

Jaiprakash Associates lost 5.08% to Rs 44.80 at 10:36 IST on BSE, with the stock extending Wednesday's fall triggered by a foreign bank downgrading the stock to sell from hold citing higher-than-expected debt.
Meanwhile, the BSE Sensex was down 36.83 points, or 0.18%, to 20,053.85. On BSE, 11.89 lakh shares were traded in the counter as against an average daily volume of 23.84 lakh shares in the past one quarter. The stock hit a 52-week low of Rs 44.65 in intraday trade today, 25 July 2013. The stock hit a high of Rs 45.95 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 till 24 July 2013, falling 7.72% compared with the Sensex's 8.36% gain. The scrip had also underperformed the market in past one quarter, sliding 39.68% as against Sensex's rise of 4.75%. The large-cap company has an equity capital of Rs 443.81 crore. Face value per share is Rs 2. Shares of Jaiprakash Associates fell 10.67% in two trading days from a recent high of Rs 50.15 on 23 July 2013 triggered by a foreign bank downgrading the stock to sell from hold. The foreign bank also 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 foreign 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.