Stock market analyst Ashwani Gujral maintained ‘Buy’ rating on Sterlite Industries (India) to achieve a short term target between Rs 680 – Rs 725.

According to Mr. Gujral, interested traders can buy the stock with a strict stop loss of Rs 600.

Today (July 16), the shares of the company opened at Rs 638 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 17.45 & 34.18 respectively. The share price has seen a 52-week high of Rs 738.90 and a low of Rs 164.50 on BSE.

Sterlite Energy, a wholly-owned division of Sterlite Ind, is ready to hit the capital market shortly with a IPO to lift around Rs 30 billion in order to part finance its growth requirements.

It is discovered that Sterlite Energy has decided to appear with an initial public offer (IPO) by the next 3-4 months.

The company may reduce up to 10% of its equity stake to lift about Rs 30 billion.

On July 10, Sterlite Industries (India) said that it would invest Rs 200 billion by the next twelve months in order to create added capacity of 4,500 mw.

This will also mark the Sterlite`s entry into commercial power generation.

The company is establishing new power projects at Jharsuguda and Lanjigarh in Orissa having a mixed capacity of 3,150 mw.

It also decided to establish a 160 MW project at Rajpura Dariba in Rajasthan and another 1,200 MW project at Korba in Chhattisgarh.

The new proposal would be introduced by Sterlite Energy (SEL), which will work as the company’s commercial power generation division.