Prabhudas assigns 'outperformer' on JP Associates
Prabhudas Lilladher has an ‘outperformer’ rating on Jaiprakash Associates with a sum-of-parts valuation target price of Rs 325.
By INDIATIMES NEWS NETWORK |
MUMBAI: Prabhudas Lilladher has an ���outperformer��� rating on Jaiprakash Associates with a sum-of-parts valuation target price of Rs 325, citing the value unlocked from JP Power Ventures awarding land to Jaypee Infratech and potential value from the Ganga-Ballia Expressway.
Based on the discounted equity cash flows, the brokerage has valued Jaypee Infratech at Rs 232 billion. However, given the long gestation of the project and being a little conservative, Prabhudas has assigned 30 per cent discount to the NAV value.
Jaypee Infratech has entered into an investment agreement with ICICI Bank under which the bank will invest Rs 1,150 crore-- Rs 250 crore equity and Rs 900 crore debt.
Jaypee Infratech will be issuing ICICI Bank 10 million shares of Rs 10 each for cash aggregating to Rs 250 crore, which will give it 1 per cent stake in the company. The balance amount will be through a term loan aggregating Rs 900 crore.
Based on the discounted equity cash flows, the brokerage has valued Jaypee Infratech at Rs 232 billion. However, given the long gestation of the project and being a little conservative, Prabhudas has assigned 30 per cent discount to the NAV value.
Jaypee Infratech has entered into an investment agreement with ICICI Bank under which the bank will invest Rs 1,150 crore-- Rs 250 crore equity and Rs 900 crore debt.
Jaypee Infratech will be issuing ICICI Bank 10 million shares of Rs 10 each for cash aggregating to Rs 250 crore, which will give it 1 per cent stake in the company. The balance amount will be through a term loan aggregating Rs 900 crore.
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