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

Reuters Posted online: Friday, Oct 18, 2013 at 0000 hrs
Mumbai : 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.