Coal auction a positive trigger for Sesa Sterlite; buy from a 6-8 months perspective: Harendra Kumar

In a chat with ET Now, Harendra Kumar, Managing Director-Institutional Equities, Elara Capital, shares his views on Sesa Sterlite.

ET Now: What about some of the stocks in news? There is a bunch of stocks that could be reacting today; the coal beneficiaries, the power companies, the metal companies, the couple of Nifty inclusions like Idea as well as Yes Bank. Then of course, Kotak-ING merger gets the CCI nod. So bunch of spaces in news. What is it that has been the top talk in the morning meeting today at Elara?

Harendra Kumar: One stock that one should look at it from the coal auctions is Sesa Sterlite. We have been marketing this to fund very aggressively. There are multiple triggers for Sesa Sterlite, so BALCO has bagged one coal block which will reduce its power cost. The second phase as well is likely to bag a few more blocks. Third point is that you could expect the export duty on iron ore that could be phased out. Fourth of course is the buyback of Hindustan Zinc. So this coal auction is one positive trigger and plus there are multiple triggers lined for Sesa Sterlite. The stock is actually at rock bottom valuations at this point of time. So from here till the next seven to eight months, Sesa Sterlite is a good play in terms of the metal packs.