Sesa Sterlite - Rating: Sell; Target Price: Rs152 - Centrum

- We expect improved sequential performance from domestic zinc operations on the back of higher zinc volumes. We see sequentially weaker performance from zinc international operations (due to lower volumes). Aluminium businesses are expected to witness flat QoQ volumes and EBITDA while power operation continues to witness PLF of ~40%.

- We see consolidated EBITDA of ~Rs70.3bn with a margin of 37.8% for Sesa Sterlite group. Margins in merchant power business are expected to be lower QoQ. Aluminium business is expected to see flat EBITDA performance and iron ore operations are expected to continue with losses.

- Group adj-PAT is expected to be at ~Rs19.7bn.

Source : Equity Bulls

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