X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Sterlite: Non-ferrous mughal? - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Dec 15, 2000

    Sterlite: Non-ferrous mughal?

    Sterlite Industries (India) Ltd. is setting itself up to become a leader in the non-ferrous metals business in the country. Over the past two years it has been on an acquisition spree in a race to become the numero uno.

    Its race for the summit began in FY98 when the company launched a takeover bid for Indian Aluminium (Indal). However, the episode propelled into a dual, which eventually resulted in Hindalco as the victor.

    For a footing in the aluminium business Sterlite took over Madras Aluminium and has extended its presence in the downstream aluminium sector with the acquisition of India Foils in FY00. To further consolidate its position in the aluminium sector the company has bid for the Government's 51% stake in Bharat Aluminium (Balco).

    Extending its backward integration in the copper business, Sterlite's board recently approved the acquisition of two copper mines in Australia. In all cash deal Sterlite will acquire the entire shareholding in these companies for an estimated Rs 2 bn. Consequently, the company will obtain 50% (60,000 tonnes) of its raw material requirement from the mines in Australia. This will help reduce the risk in supply of the raw material; further, it is also expected to bring down copper concentrate procurement costs by an estimated 10%-15%. The acquisition of copper mines is not expected to alter the capital structure of the company as Sterlite has significant cash balances, which cover the acquisition costs.

    Shifting into higher gear the company very recently announced its decision to submit an expression of interest (EoI) for acquiring 26% stake in the Government owned Hindustan Zinc. However, Sterlite has also indicated it would be more interested in picking up 51% stake in the company.

    The company has stated its intention of moving beyond copper and extending its leadership in the non-ferrous metals business. With the economy expected to exhibit tiger growth rates it could be an opportune moment for Sterlite to expand its wings over other non-ferrous metal businesses and exploit the anticipated growth.

     

     

    Equitymaster requests your view! Post a comment on "Sterlite: Non-ferrous mughal?". Click here!

      
     

    More Views on News

    Securities & Intelligence Services Ltd. (IPO)

    Jul 31, 2017

    Should you subscribe to the IPO of Securities & Intelligence Services Ltd?

    Why Super Investors are Underperforming in This Market (The 5 Minute Wrapup)

    Jul 8, 2017

    If Super Investors can wait for the right pitch, so can you.

    Tejas Networks Ltd. (IPO)

    Jun 14, 2017

    Should you subscribe to the IPO of Tejas Networks Ltd?

    Discover the Secrets of Hidden Smallcaps From These AGMs (The 5 Minute Wrapup)

    May 26, 2017

    Don't be surprised to come across some Super Investors there!

    A Trader's Nightmare. A Business Owner's Delight. (The 5 Minute Wrapup)

    May 19, 2017

    Not all small-cap investors see themselves as traders. Some see themselves as business owners.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    STERLITE IND. SHARE PRICE


    Aug 26, 2013 (Close)

    TRACK STERLITE IND.

    • Track your investment in STERLITE IND. with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    STERLITE IND. - HINDUSTAN ZINC COMPARISON

    Compare Company With Charts

    COMPARE STERLITE IND. WITH

    MARKET STATS