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Sterlite Industries regaining Street confidence
Edited by : AL CIRCLE
1 min read
Sterlite Industries is once again attracting analysts’ attention, especially after the recent quarterly results, which were ahead of expectations. Many of them are now turning positive on the company due to reasonable valuations. More importantly, analysts believe that the contribution of zinc, power and copper segments is going to be better than expected, helping the company sustain decent growth rates.
Thus, they have raised the target price for the company to Rs 125-130 per share, which is almost 25-30 per cent higher compared to its current share price of Rs 100. Given lower uncertainties and better visibility now, there is also a possibility of the stock getting re -rated.
“We like Sterlite Industries as we believe most of the negatives (largely regulatory) are now priced in and the valuations are attractive at five times FY2014 price to earnings. Also, with the impending merger, Sterlite has a well-diversified business model with high quality zinc and oil assets and steady expansion plans across verticals,” says Varun Lohchab, who tracks the company at Religare Capital Markets.
Thus, they have raised the target price for the company to Rs 125-130 per share, which is almost 25-30 per cent higher compared to its current share price of Rs 100. Given lower uncertainties and better visibility now, there is also a possibility of the stock getting re -rated.
“We like Sterlite Industries as we believe most of the negatives (largely regulatory) are now priced in and the valuations are attractive at five times FY2014 price to earnings. Also, with the impending merger, Sterlite has a well-diversified business model with high quality zinc and oil assets and steady expansion plans across verticals,” says Varun Lohchab, who tracks the company at Religare Capital Markets.
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