Sesa Sterlite rose 3.72% to Rs 191 at 11:53 IST on BSE after a foreign brokerage initiated coverage of the stock with a 'buy' rating and a target price of Rs 220.
Meanwhile, the BSE Sensex was up 299.60 points, or 1.47%, to 20,715.11.
On BSE, 7.78 lakh shares were traded in the counter compared with average volume of 13.48 lakh shares in the past one quarter.
The stock hit a high of Rs 192.40 and a low of Rs 185 so far during the day. The stock hit a 52-week low of Rs 119.45 on 31 July 2013. The stock hit a 52-week high of Rs 205.40 on 7 January 2013.
The stock had underperformed the market over the past one month till 17 October 2013, rising 1.99% compared with the Sensex's 3.09% rise. The scrip had, however, outperformed the market in past one quarter, rising 22.12% as against Sensex's 2.34% rise.
The large-cap company has an equity capital of Rs 296.47 crore. Face value per share is Re 1.
The foreign brokerage initiated coverage of Sesa Sterlite, citing upcoming earnings drivers. These include its stake purchase in cash-rich subsidiary Hindustan Zinc, dividends from unit Cairn India and the potential removal of a mining ban in the state of Goa.
The brokerage added that the company's operating profit would grow at a compounded annual growth rate of 11% over the 2013-2015 fiscal years, led by strong volume growth in its power, aluminium and iron ore businesses.
Sesa Goa has changed its name to Sesa Sterlite following the scheme of amalgamation between the Vedanta group firms whereby Sterlite Industries (India) and few other Vedanta group firms were merged with Sesa Goa.
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