JP Associates has target of Rs 140: Rajesh Jain

Jaiprakash Associates has target of Rs 140, says Rajesh Jain, Independent Market Strategist.

Jain told CNBC-TV18, "In Jaiprakash Associates I would expect not just price recovery but a substantial appreciation potential as well because even if you look at the last quarter numbers, the underperformance was largely due to lower revenue booking in the EPC division, the Yamuna Expressway construction was obstructed due to a few reasons hence some underperformance out there." He further added, "Also in the cement space even though there was a significant volume growth, the EBITDA was down by as much as Rs 150 per tonne, so the bottomline bled because of that. But the real estate division gave some excellent figures on PSF realization and overall profitability. So JP Associates at this point is an amalgamation of two businesses, which have the orders and the potential to turnaround and post great profits in the real estate business should also consolidate well given their equity and the track record." "I would easily expect a price of around Rs 140 and the time when one should see an uptick in the stock should be with better cement off takes and prices over the next three-four months and greater EPC revenue booking - revenue booking was deferred in the last quarterly numbers, so I expect the March quarter to correct that. If real estate manages to sustain its track record, I believe there has been some news on the company the last couple of minutes on your own tickers where Mr Manoj Gaur has been talking about how they intend to consolidate further. So I expect the stock to see a price of Rs 140 easily anytime through 2011 but pre Diwali would be an excellent time horizon."