Monday 10 November 2008

Buy Sterlite Industries; target Rs 455: KRChoksey

KRChoksey Research has recommended a buy rating on Sterlite Industries, with price target of Rs 455, in its report dated October 24, 2008. "At the CMP of Rs 208,65, Sterlite is trading at 3x based on TTM EPS of Rs 67.5. We expect Sterlite to continue to be impacted by lower EBITDA margins due to fall in base metal prices. However, the highly integrated business models in all the commodities and huge cash balances (Standalone cash level : Rs 7800 crore). Hindustan zinc is completely debt free company with Rs 9395 crore cash which translates to Rs 220 per share. We recommend a BUY on the Stock with a target price of Rs 455 which is an upside potential of 118% from the CMP," says KRChoksey's research report.

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Source: Moneycontrol

Posted by Harsh at 12:37

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