Street Smart Investor
Long-term horizon, energy, natural resources, micro-cap

Sterlite Industries: Gradually Overcoming The Headwinds

Sterlite Industries (SLT) is India's largest non-ferrous metals and mining company with market leadership in copper, zinc, lead and aluminum mining and production. The company (based on its new structure) also holds a 58.8% stake in one of India's largest independent exploration companies. As an icing on the cake, the company has major operations in India, which faces short-term economic headwinds, but has robust long-term growth potential. The stock is however trading at extremely cheap valuations due to significant headwinds faced by the company in the last six quarters (January 2012-June 2013). Sterlite currently trades at a trailing twelve month PE of 4.9, a price-to-book value of 0.5 and an EV/EBITDA multiple of 1.6. These valuation metrics offers investors an...

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