Jaiprakash Associates a good long term bet: PN Vijay

Jaiprakash Associates is a good long term bet, says PN Vijay, Portfolio Manager, www.askpnvijay.com.

Vijay told CNBC-TV18, “Fundamental change may be happening in Jaiprakash Associates with the supposed conclusion of the cement transaction with Ultratech and the opening up of the Yamuna Express way. Now JP Associates fortunes are more and more linked with the progress of the real estate development that’s going on in the Greater Noida Expressway and more on the Yamuna Express Way which is now functional.”
He further added, “So the monetization of that, the reduction of the debt which is very high is key. But then they have the wherewithal to do it in the sense that they have enough land bank and the circumstances are probably favorable for them because nobody in the world probably have such a huge land parcels in urban agglomerates like JP Associates has. So the quicker they monetize that that will get reflected in the bottom-line since most of that land is paid for. So JP associates will be good for risky investors given the volatility and the high debt level. But if one is looking at a 18 month time span, it could give you very large returns.”