Jaiprakash Associates - Q4 earnings below est., asset stake sale key catalyst - Emkay

- EBITDA at Rs8.5bn, -13.5% yoy below our est, led by lower E&C revenues & Margins. E&C EBIT at Rs2.9bn (-31% yoy) below est(Rs3.5bn). Cement realisation +3.2% qoq while EBIDTA/t came in @Rs940 better than estimate of Rs776

- Both Cement in E&C biz see revenue decline as cement volume decline 4.3% yoy while E&C biz see decline in absence of new order inflows. APAT decline 56% as biz momentum slow down. Interest cover remain low at 1.55x

- Led by lower cement volumes & realisations we cut our FY14E EPS est. by 22% and TP to Rs75. Our target price is based on the average earnings of FY14E&FY15E

- Stock price performance to be governed by asset monetisation plan which becomes urgent now, as interest cover remain low. HOLD

Source : Equity Bulls

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