Thursday, 10 August 2017

Jaiprakash Associates Shares Soar 217% in 2017, Still Down 92.47% from life Highs

Beleaguered Jaypee Group company stocks are on fire this year. Share prices of Jaiprakash Associates Ltd jumped 217.22%, while shares of group companies Jaypee Infratech Ltd rose 165% and Jaiprakash Power Ventures Ltd gained 72% so far in 2017.

In this period, benchmark indices Sensex and Nifty are up 19.4% and 21%, respectively.

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However, even after steep rise in share prices of these companies, they are far from their respective record highs. For instance, Jaiprakash Associates is still down 92.47% from its record high at Rs340 it touched in 2008.

Similarly, Jaypee Infratech and Jaiprakash Power Ventures are down 80.35% and 95.30% from life highs at Rs100 and Rs144 they hit in 2010 and 2008, respectively.

In 2016, Jaiprakash Associates slipped 32.18%, Jaiprakash Power Ventures fell 43.43% and Jaypee Infratech Ltd lost 42.14% as debts piled on the companies. Lenders have been insisting to sell some of the group’s best assets, and transfer ownership to cut debt.

Now as the group is addressing its debt issue via restructuring and other measures, investors are lapping up shares, analysts said.

“JP Associates is seeing buying interest this year due to massive debt restructuring the company has undertaken but it is yet to be even near its peak,” said an analyst who did not wish to be named.

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