Investment Advisor SP Tulsian advices to remain invested in Jaiprakash Associates.
Tulsian told CNBC-TV18, "The pessimism got built up in JP Associates that the company JP Associates has reduced their stake in JP Infratech, which is the reality company, from 100% to 55%. In spite of clarifications, coming from the management about 10 days back that the company still continues to hold about 100%, and except for maybe the placement of a strategic investor, there wont be any equity dilution by JP Associates who is the parent company, the stock hasn’t been able to recover."
He further added, "If one take a call right now, the market cap of about Rs 30,000 crore, very much justifies is existing business of contracting cement divisions and the Taj Corridor of about 180 km, coupled with the huge realty of more than 500 acres of land available for development, and the Ganga Expressway; taking all these, I don’t think that the stock really is in any way expensive if you compare them with GVK Power and GMR Infra, Punj Lloyd and so many other stocks having corrected in this last 15 days or so. Right now at Rs 30,000 crore or less than that, the market cap, the share is bound to show a rise from these levels, may not reach to its old level of Rs 500 plus but definitely can regain to the extent of 30-35% from these levels. So those who are holding the stock are advised to remain invested."
Link to the article: http://www.moneycontrol.com/india/news/stocks-views/remain-investedjp-associates-tulsian/17/45/329864
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