JP Morgan cuts Jaypee Infratech stock

JP Morgan has downgraded Manoj Gaur-led Jaypee Infratech stock to 8216;neutral8217; from 8216;overweight8217; but maintained its target price at 55 rupees citing cost overruns postponing dividend payouts.

Looks like staging a successful mega show in the form of the inaugural Formula One F1 race without a glitch did not make JP Morgan change its mind about the rating.

The company is yet to accrue 20 billion rupees on the Yamuna Expressway project,which implies that the increase in dividend payout from real estate business will likely remain subdued for next 2 years,the report said.

At 10:20 a.m. shares of Jaypee Infratech were at 50.90 rupees,down 0.78 percent.

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