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Accumulate Sterlite Ind; target of Rs 203: Emkay
Edited by : AL CIRCLE
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Emkay Global Financial Services is bullish on Sterlite Industries (India) and has recommended accumulate rating on the stock with a target of Rs 203 in its July 25, 2011 research report.
“Base metals prices though slipped slightly on QoQ maintained fair strength during the quarter. This supported the company’s topline to remain flat on QoQ basis despite drop in volume in its aluminium and copper business. During the quarter, average LME for copper and aluminium stood at US$9125/ tonne and US$2600/ tonne respectively. Copper sales during the quarter fell by 12% to 72,032 tonnes while aluminium production at Balco came at 61,000 tonnes, down slightly both YoY and QoQ. We believe copper and aluminium volume to remain subdued going forward also. Rising costs continue to put pressure on the margins of all the businesses. Aluminium business has been the worst victim of higher coal costs.”
“Base metals prices though slipped slightly on QoQ maintained fair strength during the quarter. This supported the company’s topline to remain flat on QoQ basis despite drop in volume in its aluminium and copper business. During the quarter, average LME for copper and aluminium stood at US$9125/ tonne and US$2600/ tonne respectively. Copper sales during the quarter fell by 12% to 72,032 tonnes while aluminium production at Balco came at 61,000 tonnes, down slightly both YoY and QoQ. We believe copper and aluminium volume to remain subdued going forward also. Rising costs continue to put pressure on the margins of all the businesses. Aluminium business has been the worst victim of higher coal costs.”
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