Buy Jaiprakash Associates - Kotak

Cement realizations improve, as do construction margins

Jaiprakash Associates reported a strong improvement in cement earnings-driven by a combination of volume (16% yoy) and realizations (19% yoy). Construction margins continued to remain firm (30% in 3QFY12) on account of milestone payment for recently commissioned projects.

Maintain BUY with revised target price of Rs97 (previously Rs105) as we adjust for higher standalone net debt.

Source : Equity Bulls

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