Stock Outlook: Jaypee Infratech stock is a safe bet for Investors

by khalid on 16/09/2011 · 1 comment

Looking at the stock Jaypee Infratech we have seen some value buying from a couple of days. The main reason behind it is the land Acquisition bill relating to their acquisition of 5000 acres of land which they required for making the expressway. For this project they are way ahead than their planned schedule. They are also holding 6100 acres of land for development in 5 places. Adding all makes it 11000 acres of land besides this the construction of company’s formula1 race track suggests that the project is in advance of their schedule. The company also indicated that they are 18 months ahead of plan for their 165 km expressway. Along with these they have an accrual of around 1500 crores on account of company’s property profits. The stock price has corrected abysmally to lower levels and currently trading at Rs 49. The Market capitalisation of Jaypee Infratech is 6000 crore. Going by this valuation an acre of the land owned by the company values at Rs. 1 crore.

 The company’s stock price-to-earnings ratio (P/E ratio) was 5.02. The book value is rupees 34.29 per share. Currently the price to book value is Rs 1.35 with a dividend yield of 2.71%. The Stock can be bought merely on seeing its valuation. Also, when we see the shareholding pattern of the stock  83% of the stock is held by Jaypee Associates, 10 % is held by Institutional investors, 3 to 4% is held by HNIs. The remaining 4 to 5 % is held by the general public. With these figures and financial data the stock is at the right levels to enter and hold for a long period as the future looks bright.

“Bell the Bull says Jaypee Infratech is a value buy for investors.”


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