Buy rating to Sesa Sterlite,target price Rs 220: UBS

Investment bank says Sesa Sterlite to grow on strong volume growth in its power,aluminium,iron ore businesses.

Written by Reuters | Mumbai | Published: October 18, 2013 12:35 pm

UBS initiates coverage of Sesa Sterlite Ltd with a “buy” rating and a target price of Rs 220,citing upcoming earnings drivers.

These include its stake purchase in cash-rich subsidiary Hindustan Zinc Ltd,dividends from unit Cairn India Ltd and the potential removal of a mining bank in the state of Goa.

The investment bank says its operating profit would grow at a compounded annual growth rate of 11 per cent over the 2013-2015 fiscal years,led by strong volume growth in its power,aluminium and iron ore businesses.

Sesa Sterlite shares are up 2.1 per cent at 10.26 am.

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