Derivative Stock for May/June: JP Associates

*JOINT LENDER MEET TODAY FOR DEBT REVAMP*

1) Co has total 32.85 million ton cement capacity ( out of which 5.2 million ton under construction). JP had last year sold 21.2 million ton to Ultratech for 16189 cr. _After this sale, JP will have 11 million ton cement capacity_

JP has *received NCLT approval*( final compliance) for Ultratech deal. *PAYMENT FROM ULTRATECH EXPECTED ANY DAY*Thus IN NEXT 1 WEEK or so,  total debt of 37294 cr( short term, long term) will come down to 21105 cr, leading to substantial reduction in interest cost from June quarter onwards.

2) _*Value of its Current/Non-current investments ( excluding core business assets) are more than Entire debt*_

3)Further JP owns following Five Star luxury hotels (of which _2 are in prime location of Delhi_):

Jaypee Siddharth Continental Delhi 94 rooms

Jaypee Vasant Continental, Vasant Vihar Delhi 119 rooms

Jaypee Residency Manor Mussourie 135 rooms

Jaypee Palace & Convention Centre Agra 341 rooms

Jaypee Greens Golf & Spa Resorts *( 70 acres)* Noida 170 Suites

JP Associate likely to *SELL Hotel division which may fetch JP 2500-3000 cr* for further debt reduction

*JP Associates has mind boggling assets across various verticals*

JP Associate may _stop incurring loss from September 17 quarter_ onwards as Interest cost will plunge with lower depreciation

TP 16-17 May Expiry

TP Rs 21 June  Expiry

TP Rs 60 in 15 months