Deutsche Bank downgrades India's JP Associates to 'sell'
Deutsche Bank downgrades India's Jaiprakash Associates Ltd to "sell" from "hold" and cuts its sum-of-the-parts target price to 42 rupees from 55 rupees, citing higher-than-expected debt and calling the company "maybe the most expensive cement stock." The bank says the company's consolidated debt of 612 billion rupees ($10.24 billion) came in at 10 billion rupees above its estimates.
Deutsche also cut its FY14 earnings estimates by 14 percent and that of FY15 by 9 percent, citing a "high degree of operating leverage" in a "weak cement demand environment." Jaiprakash Associates shares down 6 percent at 47.15 rupees at 0610 GMT.