Jaiprakash Associates (JAIASS) - ICICI Direct

ValuationWe have fine tuned our earnings estimates to incorporate 9MFY12results. Consequently, we have revised our FY12E and FY13E earningestimates downward by ~12% and 18%, respectively.At the CMP , the stock is trading at 1.7x FY13 P/BV. We maintain our BUYrecommendation with an SOTP price target of | 95. We have valued thecement business at | 69/share (US$110/tonne for the operational capacityof 26.7 MTPA, construction business at | 36/share (6x FY13 EV/EBITDA),power business at | 36/share (JPVL at 20% discount to CMP and directstake in Karcham Wangtoo using DCF methodology), real estate businessat | 40/share (Jaypee Infratech at 20% discount to CMP).We maintain our BUY recommendation with an SOTP pricetarget of | 95Exhibit 7: Valuation metricsSales (| cr) Sales Gr (%) EPS (|) EPS Gr (%) P/E (x) P/BV(x) RoNW(%) RoCE(%)FY10 10088.9 74.2 4.2 0.2 20.4 2.1 11.7 8.0FY11 12966.5 28.5 3.5 -15.8 24.2 1.9 13.0 7.9FY12E 13048.9 0.6 3.1 -13.4 27.9 1.8 6.7 7.2FY13E 14999.3 14.9 3.1 -0.7 28.1 1.7 6.2 6.7Source: Company, ICICIdirect.com ResearchExhibit 8: Valuation summaryBusiness Value (| cr) Per share CommentCement Division 14685 69 Value operational capacity at US$110/tonneConstruction Division 7640 36 6x FY13E EV/EBITDAPower Division 7595 36JPVL 6140 29 At 20% discount to CMPKarcham Wantgoo 1455 7 Remaining ~43% stake held by JAL based on FCFE used in JPVL valluationReal Estate Division 8466 40Yamuna Expressway 4763 22 At 20% discount to CMPJaypee Greens - Noida & Greater Noida 3703 17 at 0.9x of its NAVHotel Division 113 1 5x FY13E EV/EBITDAGanga Expressway 271 1 1x P/BVJaypee Sports International Ltd 500 2 1x P/BVHimalayan Expressway 118 1 1x P/BVWind Power 490 2 2x P/BVCaptive coal mine 66 0 1x P/BVTreasury shares 1465 7 18.9 crore valued at 10% discount to CMPTotal Enterprise Value 41409 195Less: Net debt 21275 100 Less:Net debtTarget 20134 95Source: Company, ICICIdirect.com ResearchICICI Securities Ltd | Retail Equity Research Page 4