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UBS starts Sesa Sterlite with a 'buy' rating

Reuters Market Eye - UBS initiates coverage of Sesa Sterlite Ltd (NSI:SESAGOA) with a "buy" rating and a target price of 220 rupees, citing upcoming earnings drivers.

These include its stake purchase in cash-rich subsidiary Hindustan Zinc Ltd (NSI:HINDZINC), dividends from unit Cairn India Ltd (NSI:CAIRN) and the potential removal of a mining bank in the state of Goa.

The investment bank says its operating profit would grow at a compounded annual growth rate of 11 percent over the 2013-2015 fiscal years, led by strong volume growth in its power, aluminium and iron ore businesses.

Sesa Sterlite shares are up 2.1 percent at 1026 IST.

(Reporting by Abhishek Vishnoi)