JP Associates extends fall on earnings concerns

Shares in cement maker Jaiprakash Associates were down 2.6 percent, extending their fall from a 2.4 percent decline during the short Diwali session on Tuesday. Stock markets were closed on Wednesday.

Jaiprakash reported late on Monday July-September that the company’s net profit slumped 48.6 percent from a year ago, disappointing investors.

[caption id=“attachment_524917” align=“alignleft” width=“380”]  Debt remains a key concern, Morgan Stanley added, noting net debt to equity has increased. Reuters[/caption]

Morgan Stanley said that Jaiprakash’s cement operations proved sturdy, but attributed the profit decline to weakness in the construction and real estate divisions.

Debt remains a key concern, Morgan Stanley added, noting net debt to equity has increased.

“We believe that the market will remain sanguine on the issue for a while, as the company tries to sell assets to reduce leverage,” the investment bank said in a note dated November 14.

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