Hold Sterlite Industries: Phani Sekhar

Hold Sterlite Industries (India), says Phani Sekhar, Fund Manager, Angel Broking.

Sekhar told CNBC-TV18, "I think FY12 might be a better year than FY11 and since there is a turnaround in the fortunes of both zinc and copper and aluminum also is not doing so badly, I think all these are likely to give Sterlite atleast an earnings growth of somewhere around 25-30% in FY12." He further added, "I think the main issue out there is one should not play for a re-rating in valuations of Sterlite because they trade at a discount to their peers for good reason and I think with whatever is happening, now atleast with the acquisition of Cairn through Sesa Goa, the investor sentiment is not so upbeat on the group and considering that I would not play for a re-rating. So one can hold on to this but this will not be the top pick in the entire metal space, the target price from a one year perspective might be around Rs 220-230."