Jaiprakash Associates - E&C vertical drove the out performance - Emkay

Reco: HOLD
CMP: Rs 91
Target Price: Rs 93

- APAT Rs1.28bn -48%yoy above est (Rs0.7bn) driven by higher E&C EBIT at Rs4.4bn v/s est Rs2.4bn. E&C- margin at 34.1% led by one offs. Cement EBIT at Rs1.4bn v/s est Rs1.7bn.

- Revenues grew +4%yoy to Rs29.8bn, RE revenues up 33% yoy Cement grew -12.2%qoq% (Vol. +11% to 3.2MT & Real. -1.5% to Rs 4,287/ton), E&C -17%yoy to Rs12.9bn incl. one offs

- JCCL divestment critical for reducing leverage, Talks at advanced stages of negotiation, should materialize in Q3FY13. Valuation already factoring the upsides from the divestment

- Upgrade FY13E by 16% owing to divestment in loss making JCCL & E&C one offs. Prospect improving for cement real. in 2H- Valuation offers limited upside - Maintain Hold TP Rs93

Source : Equity Bulls

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