Murtuza Arsiwalla of Kotak Institutional Equities told CNBC-TV18, "If I break down Jaiprakash Associates the story is one of de-leveraging. As we all do know that there is a fairly high amount of leverage in JP Associates, the key to watch out for is like in the case of the Gujarat asset which was a non-earning contributor and therefore a good asset to selloff. So essentially what remains important is whether it is in the power, subsidiary or in the parent entity with the cement assets. Whether the assets that are being hived off are the ones which are significant earning contributors or they have not been earning contributors and if they are the ones which are of the latter kind that is a good deleveraging for the company to look at and that is essentially what is going to drive stock performance from hereon."
"We are still positive on JP Associates. The valuations are still attractive. Near about Rs 50-60 is where a lot of the positives get built in and we would revisit our stance at that price point," he added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
