Jaiprakash to outperform Rel Infra: Barclays Cap

Barclays Capital initiates coverage of Indian engineering and construction firm Jaiprakash Associates with an "overweight" rating and a target price of Rs 99, but starts Reliance Infrastructure at "equalweight" and a target price of Rs 598.

BarCap says prefers Jaiprakash Associations, citing better returns on equity, "strong" EBITDA growth and better near-term catalysts.

Barclays says expects Jaiprakash's EBITDA to grow at a compounded pace of 27% by fiscal 2015, compared to 14% for Reliance Infrastructure.

The brokerage adds Jaiprakash' planned stake sale in unit Jaypee Cement, and the redemption of USD 524 million in foreign currency convertible bonds will act as near-term catalysts for the stock.

JP Associates gains 0.5% to Rs 74.45, while Reliance Infra adds 0.6% to Rs 509.20.