Avoid Jaiprakash Associates, says Hemang Jani

Avoid Jaiprakash Associates, says Hemang Jani, Sr Vice President, Sharekhan.

Jani told CNBC-TV18, "We would rather focus on the companies or sectors where there is larger comfort in terms of corporate governance and visibility on the topline and where the margin pressure is going to b e relatively low. Jaiprakash Associates though is looking interesting but from a risk return perspective given the high debt that the company has we think that it would be better to avoid that." The company's trailing 12-month (TTM) EPS was at Rs 5.21 per share. (Dec, 2010). The stock's price-to-earnings (P/E) ratio was 16.07. The latest book value of the company is Rs 38.55 per share. At current value, the price-to-book value of the company was 2.17. The dividend yield of the company was 1.29%.