MOST revises Hindustan Zinc, Sesa Sterlite' earnings

Motilal Oswal has come out with its report on metal space.

Domestic steel prices increase 1% WoW; Hindustan Zinc and Sesa Goa, Sterlite's earnings revised:

• Indian long and flat steel prices increased 1% and 1.1% WoW, respectively. Sponge iron prices remained flat WoW at INR24,700/ton.
• Steel prices increased in China (0.4% WoW), Russia (1.2% WoW) and the Middle East (1.9% WoW). Prices declined in Turkey (-1.2% WoW) and North America (-0.7% WoW). Prices displayed a mixed trend in Europe.
• 63.5% Fe iron ore prices increased 1%WoW to USD149/ton. China 2nd grade coke weekly spot export prices declined 3% WoW to SD375/ton.
• Norsk Hydro's CAP 1.5mtpa alumina project has been postponed due to uncertainty in aluminum supply/demand balance.
• According to media reports, 2Q benchmark prices of FeCr are expected to increase amid rising spot prices and electricity-saving shutdowns in S.Africa. Prices are expected to settle between USD1.2/lb-1.40/lb.
• We have revised our earnings estimates for Hindustan Zinc (HZ) and Sesa Sterlite (SS) to factor in recent developments. We have cut HZ's FY13 EPS estimate by 10% to INR13.8 to factor 7% lower zinc production.
• SS FY13 EPS estimate has been increased by 2% to INR36.1/share due to increased cess on crude oil (negative by 5%) and higher crude price assumption of USD110/bbl (positive by 7%).

Public holding more than 90% in Indian cos

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