JP Associates shares may touch Rs 99: Barclays

Barclays has retained its ‘Overweight’ rating on Jaiprakash Associates with a price target of Rs 99.

“Lack of operating cash flow visibility and material increase in debt in a rising interest rate environment has put pressure on JPA’s balance sheet and valuations.

With the ramp-up in operating cash flows, JPA will start deleveraging from FY14E onwards and its ROEs will increase from 6% in FY12 to 17% by FY15E,” said the investment bank in a note to clients.