Date:
October 01, 2008
Ref. No. MPML/BB/156/042/2008
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Markets
were trading strongly today as crude fell down to $106 bbl. Extending
earlier gains, the market spurted in mid-afternoon trade as crude
oil price slipped further to below $106 a barrel. Crude is set to
fall below $100 bbl. Sensex crossed the psychological 15,000 levels.
When the market was up today one stock was not performing well.
Sesa Goa Ltd is one such stock that was market Hero in the recent
past. This stock has discounted almost 20% in last 2 weeks. This
is India's biggest mining company. We suggest you to buy this stock
Current market rate.
When the recent IIP data was released, the only sector, which has shown growth, was mining. This should be a piece of good news for India's largest private sector exporter of iron ore Sesa Goa. Investors should seriously consider this company for investments. The company has a strong management bandwidth and also has shown strong financial growth in the past. The topline and bottomline have grown consistently in the last five years. Sesa Goa has carried its momentum in FY09 by showing impressive growth. Sesa Goa has corrected in the recent market downfall and steps taken by govt. to protect rising steel prices. Govt has increased export duty by 20% on iron ores export. The stock has discounted this move by the govt. hence; we do think that it is the right opportunity to enter the scrip at the current level, as its valuations look cheap. At the CMP of Rs.152.30 it is well priced for good long-term investment. This is considerably on the lower side. In the past the scrip has traded at a P/E of more than 20x, this gives it the scope for upward movement and hence we recommend investors to buy the scrip at the current level. Awaiting for you Quick Response. Thanks and Regards, PMS Dept.
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