Sesa Sterlite gains on expansion buzz

Sesa Sterlite advanced 3.83% to Rs 246.45 at 14:15 IST on BSE, on reports that the company is planning to expand its copper smelter plant in Tuticorin, Tamil Nadu with an investment of Rs 2500 crore.

Meanwhile, the BSE Sensex was off 7.71 points, or 0.03%, to 28,170.17

On BSE, so far 4.37 lakh shares were traded in the counter, compared with an average volume of 4.65 lakh shares in the past one quarter.

The stock hit a high of Rs 247.40 and a low of Rs 237.15 so far during the day. The stock hit a 52-week high of Rs 318.40 on 6 June 2014. The stock hit a 52-week low of Rs 169.55 on 14 March 2014.

The stock had underperformed the market over the past one month till 17 November 2014, rising 1.98% compared with the Sensex's 7.93% rise. The scrip also underperformed the market in past one quarter, sliding 17.67% as against Sensex's 7.95% rise.

The large-cap company has an equity capital of Rs 296.47 crore. Face value per share is Re 1.

As per the expansion plan, Sesa Sterlite reportedly plans to double the copper manufacturing capacity to 400,000 tonne per annum and set up a two power projects with 80 megawatts capacity in Tuticorin, Tamil Nadu. Post the proposed expansion, this would be Asia's largest copper manufacturing facility in a single location, reports added. The factory supplies 45% of the country's copper requirement.

Sesa Sterlite's consolidated net profit fell 32.4% to Rs 1619.29 crore on 22.7% fall in net sales to Rs 19448.14 crore in Q2 September 2014 over Q2 September 2013.

Sesa Sterlite is one of the world's largest diversified natural resources companies. Its business primarily involves exploring, extracting and processing minerals and oil & gas. The company produces oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and have a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets with over 80% of its revenues from India, China, East Asia, Africa and the Middle East. Sesa Sterlite is a subsidiary of Vedanta Resources plc, a London-listed company.

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