Buy Sterlite Technologies, target of Rs 216: KRChoksey

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KRChoksey Research has recommended a buy rating on Sterlite Technologies with a medium term target price of Rs 216 in its July 24, 2008 research report."STL net sales rose by 68.7% to Rs 404.2 crore in Q1FY09 as against Rs 239.6 crore during Q1FY08. While, EBITDA & PAT of the company declined up by 12.4% & 30.9% to Rs 29.3 crore & 8.8 crore in Q1FY09 as against Rs 33.5 crore & Rs 12.7 crore during Q1FY08."

"At CMP of Rs 173.35, the stock is trading at 11.1x on FY08 earning of Rs 15.6 and 8.0x on FY09E earning of Rs 21.6. On back of huge transmission and distribution expenditure of Rs 4270 billion in XIth plan, strong management guidance of earning EPS of Rs 25 in FY09E, healthy order book and capacity expansion plans, we put the BUY rating on the stock with the medium term target price of Rs 216, an upside potential of 24.6% from current levels," says KRChoksey's research report.

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