Sterlite Industries - 3QFY2013 Result Review - Nirmal Bang

Sterlite Industries 3QFY13 EBITDA was 10%/7% below our estimates due to poor performance of power and copper segments.

However, PAT was 2% above estimate due to higher other income and lower tax rate, while it was 13% below street estimate.

We have revised our EBITDA estimates downward for the combined entity i.e. Sesa-Sterlite by 5%/1% for FY13E/ FY14E, respectively.

We have retained our TP of Rs115 on the stock based on the valuation of Sesa-Sterlite. However, we have upgraded our rating on the stock to Hold from Sell following a fall in its price since our last update.

Source : Equity Bulls

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