Tuesday 11 November 2008

Buy Sesa Goa, target of Rs 95: PINC

PINC Research has recommended a buy rating on Sesa Goa with a target of Rs 95 in its October 25, 2008 research report. "Sesa Goa Ltd’s (SGL’s) results were in line with our expectations as it reported net sales of Rs 8.8 billion (+130%) and net profit of Rs 3.4 billion (+260%). Sesa Goa is the largest private iron ore miner in the country, with its portfolio well diversified between export and domestic with spot:contract ratio skewing more towards spot, as it fetches higher realisations."

"The key concern remains of iron ore prices dipping further from the current levels, as mid term demand outlook for steel appears bleak. However, despite the softening global commodity pricing scenario, considering the strong earning potential of the company, (EPS of Rs 26 for FY10) and its cash board, (Rs 35/share), we recommend a ‘BUY’ on the stock with a 12 month price target of Rs 9," says PINC's research report.

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Posted by Harsh at 07:43

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.