UBS starts Sesa Sterlite with a 'buy' rating

The investment bank says its operating profit would grow at a CAGR of 11% over the 2013-2015

UBS initiates coverage of Sesa Sterlite Ltd with a "buy" rating and a target price of Rs 220, citing upcoming earnings drivers.

These include its stake purchase in cash-rich subsidiary Hindustan Zinc Ltd , dividends from unit Cairn India Ltd and the potential removal of a mining bank in the state of Goa.

The investment bank says its operating profit would grow at a compounded annual growth rate of 11% over the 2013-2015, led by strong volume growth in its power, aluminium and iron ore businesses.

Sesa Sterlite share was up 2.1% at 1026 IST.