Nirmal Bang, one of the leading equity research-cum-broking house, is of the view that investors can sell Jaiprakash Associates Ltd with a target price between Rs 128-111.

According to research report, investors can sell the stock with a strict stop loss of Rs 145.

Today (May 12), the stock opened at Rs 135, as against its last closure of Rs 142 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 7.44 and 18.49 respectively. The share price has seen a 52-week high of Rs 272.40 and a low of Rs 47.05 on BSE.

Nirmal Bang is of the view that investors should sell the stock today in order to avoid loss.

After selling the stock, the interested investors can enter the stock again at a low price, for medium or long term prospective.

Jaiprakash Associates has recorded a growth of 83.13% in its net profit, which stood at Rs 3,853.20 million for the quarter ended March 31, 2009.  

The company’s total income was up by 63.13% to Rs 21,945.70 million during the period under review.

It registered earnings of Rs 3.01 per share during the quarter, posting 3.01 times growth over prior year period.

The company’s directors at its meeting held on April 27, 2009 announced 15% second interim dividend of Re 0.30 per equity share of Rs 2 for the last fiscal (2008-2009).

The board of the company has decided to lift around Rs 40 billion via private placement / public issue of non convertible debentures, in one or more parts, to meet up the company`s need of funds for its capital expenditure, long-standing working capital arid other general business purposes.

Moreover, the company’s finance panel has been authorized to settle on the conditions including, size, coupon rate, timing etc. of the projected NCDs.