Moneycontrol
Apr 30, 2012 11:07 AM IST | Source: Moneycontrol.com

Buy Sterlite Industries; target of Rs 148: R K Global

R K Global is bullish on Sterlite Industries and has recommended buy rating on the stock with a target of Rs 148 in its April 24, 2012 research report.

 
 
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R K Global is bullish on Sterlite Industries and has recommended buy rating on the stock with a target of Rs 148 in its April 24, 2012 research report.


“Sterlite standalone revenue declined by 6%Y-o-Y to Rs45343mn in Q4FY12 (above our estimate of Rs41925mn) compared to Rs48303mn in Q4FY’11 on the back of voluminous growth although seen weak LME price. The company mined metal and cathode production in line with the corresponding period at 5KT and 80KT respectively. EBITDA too declined by 5%Y-o-Y to Rs2350mn (above our expectation of Rs2029mn) in Q4FY’12 compared to Rs2480mn in Q4FY’11. EBITDA adjusted OI improved by 4760bps to 15.4% on the back of 80% improvement from other income (OI). However the company’s interest cost gone up by 71% to Rs1729mn during the quarter. Further the company exceptional expenses stood at Rs4233mn during the quarter as the company was liable to pay Asarco a sum of US$82.75mn for the breach of contract. This impacted PBDT which declined by ~74% Y-o-Y to Rs1036mn during the quarter much below our expected Rs4686mn. PAT also declined by ~69.4%Y-o-Y during the quarter; however tax expenses declined but it was offset by the increment in the depreciation cost by 32.8% during the quarter.”


“Sterlite consolidated revenue grew at 7.6% Y-o-Y at Rs107,627mn in Q4FY’12 compared to Rs100,000mn in Q4FY’11. But the company’s operating profit declined by ~15.6% to Rs25723mn compared to Rs30511mn in Q4FY11 as total expenditure grew by 17.7% Y-o-Y to Rs82465mn in Q4FY12 compared to Rs70050mn in Q4FY11. PBDT declined by 18.3% to Rs29804mn in Q4FY12 on the back of higher exceptional loss of Rs4318mn and double interest cost during the Quarter. Consolidated PAT too fell 27%Y-o-Y to Rs19866mn compared to Rs27300mn on the back of 44% increase in depreciation cost; however tax cost fell by 14% Y-o-Y to Rs4866mn during the quarter.”


“Sterlite consolidated revenue grew at 7.6% Y-o-Y at Rs107,627mn in Q4FY’12 compared to Rs100,000mn in Q4FY’11. But the company’s operating profit declined by ~15.6% to Rs25723mn compared to Rs30511mn in Q4FY11 as total expenditure grew by 17.7% Y-o-Y to Rs82465mn in Q4FY12 compared to Rs70050mn in Q4FY11. PBDT declined by 18.3% to Rs29804mn in Q4FY12 on the back of higher exceptional loss of Rs4318mn and double interest cost during the Quarter. Consolidated PAT too fell 27%Y-o-Y to Rs19866mn compared to Rs27300mn on the back of 44% increase in depreciation cost; however tax cost fell by 14% Y-o-Y to Rs4866mn during the quarter,” says R K Global research report.


FIIs holding more than 30% in Indian cos


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