Bullish on Sterlite: Rajnish Kumar

In a chat with ET Now, Rajnish Kumar, Executive Vice President, Fullerton Securities & Wealth Advisors Ltd talked about Sterlite.

Why do you single Sterlite out of the metal pack especially with the kind of bad publicity that has been surrounding Anil Agarwal and all of his group companies at the moment?

Rajnish Kumar: Yes, you are absolutely right the kind of flurry of bad news which has come around Sterlite has been quite a bit of late but one thing that reassures us is the fact that they are fairly for example in aluminium they are the third largest player in the country. In copper they are the second largest manufacturers in zinc, they are the leaders.

So they have certainly fairly basic strengths and we feel very confident about the strength of the business and balance sheet is still very strong so we feel quite bullish. I think while of course Niyamgiri and other regulatory stuff has impacted the stock and will certainly be detrimental to some extent but I think they will tied over this and will come out strong. So we have put a target of 230 on Sterlite so we are actually quite bullish on Sterlite.