Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy on ‘JP Associates’ with a target of Rs 250.

Interested investors can buy the stock on dips and hold.

In addition, the firm has suggested a support level for the scrip at Rs 217.

Today (July 22), the shares of the company opened at Rs 227 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 6.29 & 35.15 respectively. The share price has seen a 52-week high of Rs 236 and a low of Rs 47.05 on BSE.

Jaiprakash Associates, on July 18, has raised Rs 10 billion through issue of non-convertible debentures (NCDs) to Standard Chartered India.

The Delhi-based diversified firm has also planned to lift another Rs 10 billion via NCD route in the Oct-Dec quarter.

JP Associates, the construction and cement major, has issued NCDs with a 5-year term and a coupon rate of 11.5%.

While declaring its earnings for three month period ended March 31, JP Associates had stated that it planned to lift up $400 million through NCDs. It initially required to openly list NCDs, but afterward decided to go in for private placement to StanChart.

On June 10, JP Associates said that it is planning to lift funds worth Rs 25 billion to Rs 30 billion through selling some of the treasury shares that it will obtain after combining four arms with itself.

The company recently decided to combine Jaypee Hotels, Jaypee Cement, Gujarat Anjan Cement and Jaiprakash Enterprises with itself.