Jaiprakash Associates shares jump 10% to hit one-year high; can this strong up move continue?
JP Associates share price: The stock surged 9.75 per cent to hit a 52-week high of Rs 23.19. The scrip has given multibagger returns in the past six months by rallying more than 160 per cent.
- Dec 12, 2023,
- Updated Dec 12, 2023 2:17 PM IST
Shares of Jaiprakash Associates Ltd rose sharply in Tuesday's trade, extending their sharp gains for the third straight session. The stock surged 9.75 per cent to hit a 52-week high of Rs 23.19. The scrip has given multibagger returns in the past six months by rallying more than 160 per cent.
The crisis-hit Jaypee Group's flagship firm, in a recent BSE filing, said, "The total borrowing (including interest) of the company is Rs 29,037 crore, repayable by 2037, against which only Rs 4,193 crore is overdue as on November 20, 2023. Out of the said borrowing of Rs 29,037 crore, Rs 18,518 crore will get further reduced on transfer to the proposed Special Purpose Vehicle (SPV) for which the scheme of arrangement duly approved by all the stakeholders, is pending sanction of NCLT. The entire loan is in any case under restructuring."
Post the proposed divestment of cement business and the restructuring under consideration, the borrowing will get almost to nil upon implementation of revised restructuring plan, it added.
Also read: Jaiprakash Associates shares jump 10% today; can stock break above Rs 21 level?
On technical setup, support on the counter could be seen at Rs 21. On the higher side, resistance may be found around Rs 25. An analyst suggested booking profits at currrent levels.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 21 and resistance may be seen around Rs 25. The stock may see a trading range between Rs 16 and Rs 30 for next couple of months."
AR Ramachandran from Tips2trades said, "JP Associates is bullish but also overbought on daily charts with next resistance at Rs 25.3. Investors should book profits at current levels as a daily close below support of Rs 21 could lead to target of Rs 16 in the near term."
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 74.02. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 5.99 against a price-to-book (P/B) value of 1.07.
Bourses BSE and NSE have put the securities of JP Associates under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
As of September 2023, promoters held 37.70 per cent stake in the company.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
Shares of Jaiprakash Associates Ltd rose sharply in Tuesday's trade, extending their sharp gains for the third straight session. The stock surged 9.75 per cent to hit a 52-week high of Rs 23.19. The scrip has given multibagger returns in the past six months by rallying more than 160 per cent.
The crisis-hit Jaypee Group's flagship firm, in a recent BSE filing, said, "The total borrowing (including interest) of the company is Rs 29,037 crore, repayable by 2037, against which only Rs 4,193 crore is overdue as on November 20, 2023. Out of the said borrowing of Rs 29,037 crore, Rs 18,518 crore will get further reduced on transfer to the proposed Special Purpose Vehicle (SPV) for which the scheme of arrangement duly approved by all the stakeholders, is pending sanction of NCLT. The entire loan is in any case under restructuring."
Post the proposed divestment of cement business and the restructuring under consideration, the borrowing will get almost to nil upon implementation of revised restructuring plan, it added.
Also read: Jaiprakash Associates shares jump 10% today; can stock break above Rs 21 level?
On technical setup, support on the counter could be seen at Rs 21. On the higher side, resistance may be found around Rs 25. An analyst suggested booking profits at currrent levels.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 21 and resistance may be seen around Rs 25. The stock may see a trading range between Rs 16 and Rs 30 for next couple of months."
AR Ramachandran from Tips2trades said, "JP Associates is bullish but also overbought on daily charts with next resistance at Rs 25.3. Investors should book profits at current levels as a daily close below support of Rs 21 could lead to target of Rs 16 in the near term."
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 74.02. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 5.99 against a price-to-book (P/B) value of 1.07.
Bourses BSE and NSE have put the securities of JP Associates under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
As of September 2023, promoters held 37.70 per cent stake in the company.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)