Sep 08, 2010
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Sterlite
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Sterlite
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Sterlite
According to Nomura Financial Advisory and Securities report, Sterlite shares have corrected 30% rise over the last few months against Sensex’s 1.7 % gain. However the industry experts opined that the market has over-reacted as the Company derives close to 90% of its value from its stakes in Sterlite Energy, Hindustan Zinc with cash and equivalents. Aluminium business has contributed 5-7% VAL accounts for only Rs 70 lakhs which is 3.5 percent of Sterlite’s total value.
Prabhat Awasthi- financial analyst with Nomura Securities says that 8-10% correction in the stock price due to VAL’s failure is unwarranted. He added by saying that “Sterlite only has a 29.5% stake in VAL, and the correction in Sterlite share prices provides a buying opportunity.”
