November 15, 2012 / 5:59 AM / 5 years ago

MARKET EYE-India's Jaiprakash extends fall on earnings concerns

1 Min Read

* Shares in cement maker Jaiprakash Associates down
2.6 percent, extending their fall from a 2.4 percent decline
during the short Diwali session on Tuesday. Stock markets were
closed on Wednesday.
* Jaiprakash reported late on Monday July-September net profit
slumped 48.6 percent from a year ago, disappointing investors.
 
* Morgan Stanley says Jaiprakash's cement operations proved
sturdy, but attributes the profit decline to weakness in the
construction and real estate divisions.
* Debt remains a key concern, Morgan Stanley adds, noting net
debt to equity has increased.
* "We believe that the market will remain sanguine on the issue
for a while, as the company tries to sell assets to reduce
leverage," the investment bank says in a note dated Nov. 14.

 (manoj.dharra@thomsonreuters.com /
rafael.nam@thomsonreuters.com)

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