Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.kotaksecurities.com/pdf/indiadaily/indiadaily27022012.pdf
Sterlite Industries/Sesa Goa
Metals & Mining
Restructuring at a cost: Sterlite’s and Sesa’s loss is VED’s gain. Vedanta Resources
(VED) announced a simplified group structure with consolidation of all assets, except
Konkola Copper Mines (KCM), with Sesa Sterlite. Transfer of VAL at equity valuation of
Rs23.3 bn (instead of negative equity) leads to a shift in value from Sesa and Sterlite to
VED shareholders. We compute impact of Rs18/share from this restructuring for Sterlite.
Accordingly, we lower the target price to Rs132 and cut our rating to ADD. Sesa
remains a REDUCE rated stock with fair value of Rs220/share.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.kotaksecurities.com/pdf/indiadaily/indiadaily27022012.pdf
Sterlite Industries/Sesa Goa
Metals & Mining
Restructuring at a cost: Sterlite’s and Sesa’s loss is VED’s gain. Vedanta Resources
(VED) announced a simplified group structure with consolidation of all assets, except
Konkola Copper Mines (KCM), with Sesa Sterlite. Transfer of VAL at equity valuation of
Rs23.3 bn (instead of negative equity) leads to a shift in value from Sesa and Sterlite to
VED shareholders. We compute impact of Rs18/share from this restructuring for Sterlite.
Accordingly, we lower the target price to Rs132 and cut our rating to ADD. Sesa
remains a REDUCE rated stock with fair value of Rs220/share.
No comments:
Post a Comment