Home / Business / Money / May see JP Group sell more assets in near-term: Quant

May see JP Group sell more assets in near-term: Quant

For a company with debt of around Rs 60,000 crore, Jaypee Group has little other option, but to sell its assets, says Mangesh Bhadang, cement, construction analyst at Quant Broking.

The Aditya Birla Group company  UltraTech Cement on Tuesday announced the acquisition of Jaiprakash Associates ‘ two cement units and associated power plants in Madhya Pradesh for Rs 5,400 crore. For a company with debt of around Rs 60,000 crore, Jaypee Group has little other option, but to sell its assets, says Mangesh Bhadang, cement, construction analyst at Quant Broking.

He sees JP Group selling some more assets in the near term.

Bhadang believes despite the high valuation, this acquisition will be positive for UltraTech considering the footprint it would provide them. He has a buy rating on UltraTech with a target price of Rs 2,500 per share.

Stay tuned for more…

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...