Jaiprakash Associates Ltd witnessed a significant uptick in Monday’s trading session, interrupting its recent two-day downward trend. Surging by an impressive 10%, the stock reached its upper price band of Rs 19.97. Priced at this level, the once penny stock has transformed into a multibagger, showcasing a remarkable rally of 180.48% over the past six months.
Despite being part of the beleaguered Jaypee Group, Jaiprakash Associates reported a narrowed net loss of Rs 207.55 crore in the second quarter ending on September 30, 2023, compared to Rs 312.21 crore in the same period the previous year. However, the company experienced an expansion in losses on a sequential basis.
In Q2 FY24, JP Associates’ revenue from operations demonstrated a robust growth of 28.65%, reaching Rs 1,213.61 crore from Rs 943.34 crore in the corresponding year-ago period.
Amidst its financial challenges, the company openly admitted to defaulting on loans amounting to Rs 4,258 crore, encompassing both principal and interest. As of October 2023, JP Associates found itself in default for a principal sum of Rs 1,733 crore and interest totaling Rs 2,525 crore.
Despite the positive market movement, analysts, commenting on the technical setup, advised investors to consider profit booking at current levels. As of 1:11 pm, the shares were trading 9.37% higher at ₹19.85.
