Exit Sesa Goa on rally: Joshi

Sharmila Joshi, VP of Systematix Shares & Stocks is of the view that one can exit Sesa Goa on rally or could look at some other stocks in some other sectors.

Joshi told CNBC-TV18, "In the last couple of years iron ore prices has been souring higher and it reflected in the bottomline of the company like Sesa Goa, which does a lot of exports to China. But what we have seen in the recent past is that prices have come off for iron ore finds from almost USD 150 to USD 50 so that’s going to be the real concern going ahead."

He further added, "Its production cost is among the lowest in the industry but even in spite of that the company has also said that they are likely to get pressure going ahead. They too have voice their concern over the way iron ore prices have come down and to go ahead with their capex plans at a time like this when you are seeing that most other corporate are kind of holding back and that is going to add further to pressure. So to my mind it might be a good idea to stay out of commodities to stay out even Sesa Goa for the time being. So if you see another rally one could exit then or could look at some other stocks in some other sectors. But Sesa Goa is not a stock that I would like at this point in time."

Disclosure: Analyst doesn't hold the above stock.

Source: Moneycontrol