Pick of the Week: Sesa Goa

FOR SHORT TERM BUY SESA GOA (BSE Code : 500295)

CMP : 84.75, Target Rs. 94 to 96

SESA GOA HAS GIVEN GOOD BREAK OUT, AND WILL BLAST UPP IN COMING WEEK.


Sesa Goa Ltd. (SGL) is a 51% subsidairy of Vedanta Resources Plc, and is the largest Indian private mining company, with reserves of ~180mn mt (Mar-08). For the past five decades, the Group has been involved in iron ore mining, beneficiation and exports, with a group turonver of around Rs. 1800 crores. Over the last decade, it has diversified into the manufacture of pig iron and metallurgical coke. The Group operates a 280,000 TPY metallurgical coke plant and a 250,000 TPY pig iron plant. Sesa Goa Limited has mining operations in Goa, Karnataka and Orissa. Sesa Goa's MetCoke Division manufactures metallurgical coke. It has 84 coke ovens with a capacity of 280,000 tonnes. Sesa has developed an energy recovery technology to manufacture coke, compliant with advanced global emission norms.

Sales and NP for year ended 07-08 were 3602.2 Cr. & 1491.7 Cr. Sales and NP for latest Quarter 1273 Cr & 644.7 Cr. On YOY basis NP has increased by 145 % & based on quarter latest its increased by 442 %