Morgan Stanley upgrades Sterlite to 'overweight'

Fri Jan 11, 2013 12:03pm IST

Related Topics

Stocks

   

Reuters Market Eye - Shares in Sterlite Industries (India) LtdSTRL.NS rise 2 percent to 117.90 rupees after Morgan Stanley upgrades the stock to "overweight" from "neutral" and raises its target price to 142 rupees from 110.20 rupees.

The investment bank says Sterlite shares have been "cheap for a while," and adds group restructuring and minority consolidation, improving sentiment in power and aluminum, and a bottoming in China's economic outlook as the key reasons for the upgrade.

Morgan Stanley expects the merger of Sesa Goa Ltd (SESA.NS) and Sterlite to be concluded by the end of March, saying it will lift sentiment due to a simplified holding structure and healthier diversification.

The bank also sees an increased possibility that Sterlite may be able to exercise its call option on the government's remaining stakes in Hindustan Zinc Ltd (HZNC.NS) and Bharat Aluminum Co Ltd.

(Reporting by Abhishek Vishnoi)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage