BofA cuts Sesa Sterlite earnings estimate, price target

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Moneycontrol Bureau

Brokerage house Bank of America Merrill Lynch has cut its earnings estimates for metal and mining major Sesa Sterlite, and also the price target, citing falling crude and iron ore prices.

The brokerage has lowered earnings estimates for FY15-FY16 by 10-33 percent, and price target to Rs 268 from Rs 283 earlier.

“Sesa Sterlite offers leverage to our positive zinc and aluminium view. It should also gain from stronger zinc volume sequentially in second half (vs. first half) and the ramp-up of unproductive power and aluminium assets,” said the BofA note to clients.

“However, the weaker Cairn earnings outlook and coal cost pressure will dampen group profits, in our view. if oil stays at USD70/bbl, we estimate that there could be a further 11 percent downside to our FY16E EBITDA and 28 percent downside to our FY16e EPS (for Cairn),” the report said.