Goldman downgrades Jaiprakesh Associates to neutral
Goldman Sachs has downgraded Jaiprakesh Associates to ’neutral’ from ’buy’ and removed the stock from the Wall Street bank’s "Asia Pacific buy list" as it sees limited potential for positive surprise as high debt levels remain a concern on earnings.
"Although next quarter earnings should improve on a sequential basis driven by better cement realizations, higher interest outflow and delays being seen in commissioning power and road assets may weigh the stock down, in our view," it said in a note.
"We attribute JPA’s underperformance to a difficult macro environment in India (inflation, high interest rates, and slowdown in order inflow) and negative news flow," it added.
Published under Cement News
