JP Group, Buy Or Sell?


Founded in 1975 by Jaiprakash Gaur, Jaypee Group offer products in Engineering, Construction,Cement, Power, Hospitality, Real Estate
, Expressways, Information Technology. Jaypee is India’s first largest cement producer and the largest private sector hydropower company with 1,700 MW in operation. Yamuna Expressway was constructed by Jaypee group and was opened on 9 August, 2012.

Hydropower Projects

  • Sardar Sarovar Dam (a gravity dam on the narmada near Navagam, Gujarat) is India’s largest concrete dam.
  • Tehri Dam, a multipurpose rock-and-earth-fill embankment dam on the Bhagirathi River in Uttarakhand is Asia’s highest Rockfill dam.
  • Nathpa Jhakri Dam is Largest underground powerhouse in country on the Sutlej River in Himachal Pradesh.
  • Indirasagar Dam is the second-largest surface powerhouse in India on the Narmada River at Narmadanagar in the Khandwa district of Madhya Pradesh.
  • Karcham Wangtoo Hydroelectric Plant is a 1000MW run-of-the-river hydroelectric power station on the Sutlej River in Kinnaur district of Himachal Pradesh.
  • In addition, with 3200 MW project coming up in Arunachal Pradesh and 720 MW in Meghalaya, the Group will have total Hydropower generation capacity of over 5600 MW by 2020.

JPPower

By knowing about the Number of Hydropower projects done by Jaypee group, we can assume that Jaypee group has Number of assets which can be used to reduce debt on the company. All this power projects are the part of JPPower means Jppower can use their assets in need. It means Jppower would become profitable company if they sold their loss generating assets.But the current share price of Jppower is between 4-4.80 which is low. So, any long-term investor can buy the stock for target of Rs.7.40.

JPInfra

Jpinfra is also a subsidiary of Jpgroup and is listed on BSE and NSE. Company in last quarter shows a very low amount of loss which means company may come in profit in any FY17 quarter. One can buy Jpinfra for target of Rs.14.80

JPAssociat

Jpassociat works in cement business. Last quarter, company posted a consolidate loss of almost Rs.600 crore. Company has also sold their Number of Cement Plants to Ultratech Cement to reduce their debt. If company in upcoming quarters shows any reduction in losses, investors can buy the stock for target of Rs.13.40. But at present, i would not recommend anyone to buy the stock for long-term.

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2 thoughts on “JP Group, Buy Or Sell?

    • November 14, 2016 at 10:07 am
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      If you have any question on JP group, ask from us at Ask Your Question Page.

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