Jaiprakash Associates shares dive 23% in 5 sessions; here's what analysts say

Shares of Jaiprakash Associates Ltd extended their fall for the fifth consecutive session in Thursday's trade. The stock tanked 5 per cent to hit its lower circuit limit of Rs 19.88. At this price, it has slumped 22.53 per cent in five trading days.

The crisis-hit Jaypee Group's flagship firm has recently executed a non-binding term sheet for restructuring of bonds. JP Associates has posted a consolidated net loss of Rs 476.12 crore in the third-quarter of this fiscal year (Q3 FY24). Its net loss stood at Rs 314.51 crore in the year-ago period and Rs 248.09 crore during the previous quarter.

Technical analysts largely suggested that the stock looked 'bearish' on charts. Immediate support will be around Rs 19 level.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has near-term support at Rs 19.60. One can expect for a further slide if the said level is broken. On the higher side, resistance will be at Rs 22.20."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 19 and resistance at Rs 21. A decisive close above Rs 21 level may trigger a further upside till Rs 22. Expected trading range will be between Rs 18 and Rs 23 for a month.

AR Ramachandran from Tips2trades said, "The stock price looks bearish on daily charts with strong resistance at Rs 22. A daily close below support of Rs 17.9 could lead to a drop towards Rs 12.5 in the near term."

DRS Finvest founder Ravi Singh said, "JP Associates looked weak on charts and may slip towards Rs 12."

The counter was trading lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day (SMAs). The scrip's 14-day relative strength index (RSI) came at 57.90. 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 4.52 against a price-to-book (P/B) value of 1.06.

As of December 2023, promoters held 29.97 per cent stake in the company.

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