3. Sterlite Industries (SLT) is a global player in the metals and mining sector, with a diversified portfolio consisting of non-ferrous metals.
Hampered by regulatory restrictions at its Tuticorin and Orissa projects, the stock has been underperforming the broader market indices, down 12% in the last year.
Sterlite completed the acquisition of 74% interest in Black Mountain Mining from Anglo American Group in South America. The acquisition includes Black Mountain zinc mine and Gamsberg zinc project, the company said in a press statement. Furthermore, the acquisition of Skorpion zinc mine in Namibia from Anglo American for around $700 million has also been concluded.On the operational front, production ramp up at its new smelters will augment volumes. Strong contributions from its power and zinc segments could improve earnings profile. Sterlite has a strong balance sheet with cash and cash equivalents of $6 billion, which can be used for organic and inorganic opportunities. The stock is currently trading at 11.2 times its estimated 2011 earning.
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